Tony Is Facing a Financial Crisis in His Business

question 6

Multiple Choice

Tony is facing a financial crisis in his business. Instead of applying for a loan from a commercial bank, he takes a loan from the cooperative that he partly owns with some of his friends. This cooperative acts as a depository institution where all the members deposit their savings on a higher interest rate than that offered by commercial banks. Being a member of this cooperative, he gets the advantage of being charged lower interest rate on his loan. Based on the information given in the scenario, the cooperative owned by Tony and his friends exemplifies a(n) _____.

• A) investment bank
• B) savings and loan association
• C) private equity firm
• D) credit union

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Definitions:

Cultural Explosion

A rapid expansion or flourishing of culture, particularly marked by significant developments in art, technology, and ideas.

Upper Paleolithic

The last phase of the Paleolithic age, featuring the most advanced stone tool technology and early art forms.

Acheulean Tool Tradition

A prehistoric technology associated with early humans, characterized by bifacially flaked hand axes and other tools.

Oldowan

Refers to the archaeological evidence pertaining to the use of very simple chipped stone tools by early human ancestors in the Lower Paleolithic period.