Banks Require Collateral for Loans in Order to

question 80

Multiple Choice

Banks require collateral for loans in order to

• A)ensure that borrowers have significant amounts of their own funds invested in their businesses.
• B)charge higher interest rates on loans.
• C)reduce their tax liability on the interest they collect on loans.
• D)reduce the total amount they are obliged to lend to any one borrower.

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Definitions:

Homologous Chromosomes

Pairs of chromosomes in a diploid organism that are similar in shape, size, and gene content, one inherited from each parent.

Nucleotides

The basic building blocks of DNA and RNA, consisting of a nitrogenous base, a sugar molecule, and one or more phosphate groups.

Quantitative Trait

Characteristics or phenotypes that vary in degree and can be attributed to polygenic effects, such as height or skin color.

Recessive Trait

A genetic trait that is expressed only when two copies of the gene are present, one from each parent.