Which of the Following Is True of State Action

question 61

Multiple Choice

Which of the following is true of state action?

• A) It includes any actions of the federal government, but not actions of state government.
• B) It includes any actions of the federal or state government, but not actions of local government.
• C) It includes only certain actions of state governments as set forth in the Constitution.
• D) Protections that guard against state action may be extended by statute to apply to private activity.

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Definitions:

Lender

An individual, financial institution, or other entity that provides funds to a borrower under the condition of future repayment with interest.

Bank Credit

The amount of credit available to a company or individual from a banking institution.

Short-Term Financing

Refers to the borrowing of funds for a period of less than one year to meet immediate financial needs.

Trust Receipts

Trust receipts are documents issued by banks to borrowers indicating that the bank holds the title to imported goods until the loan is repaid.