While the Risks of Construction Lending May Be Less in a Number

question 3

Multiple Choice

While the risks of construction lending may be less in a number of respects than those associated with land acquisition, banks still require a premium in their lending rate as compensation for the risks involved. For construction loans, banks typically require a premium above LIBOR that ranges from:

• A) 0-50 basis points
• B) 50-150 basis points
• C) 150-250 basis points
• D) 250-350 basis points

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Definitions:

Reactionary Movements

Groups or actions that aim to restore a previous state of society, often in response to perceived moral, social, or political decline.

Oppressive Society

A social system where certain groups are systematically subjected to discriminatory treatment, injustice, and coercive control by dominant groups.

Government Framework

A structure that outlines the organization, powers, and functions of the government, establishing how it operates and interacts with its citizens.

Law Overthrow

The act of removing or overturning established legal systems or principles.