Which of the Following Actions Might You Expect Lenders to Take

question 31

Multiple Choice

Which of the following actions might you expect lenders to take during periods of variable and unpredictable inflation?

• A)Reduce the amount of lending they are prepared to do.
• B)Increase the average length of loans they are willing to make.
• C)Increase the amount of lending they are prepared to do.
• D)Reduce the average length of loans they are willing to make.

---

Definitions:

Merchandising Firm

A business that purchases finished products and sells them to consumers without altering the state of the product.

Merchandise Inventory

Finished goods available for sale by a company, typically in a retail or wholesaling environment.

Selling Expenses

Costs associated with the marketing and sale of products or services, excluding the cost of goods sold.

Depreciation

An accounting method that allocates the cost of a tangible asset over its useful life.