One Reason Suggesting That Banks May Be Better Than Individuals

question 45

Multiple Choice

One reason suggesting that banks may be better than individuals at matching lenders to borrowers is that banks:

• A)Can shift loan risk to their deposit customers.
• B)Are motivated by the potential for profit.
• C)Do not have any income tax liability.
• D)Have information to evaluate creditworthiness.

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Definitions:

Emergency Powers

Special, temporary powers granted to governments to handle crises or emergencies, allowing deviations from normal procedures or laws.

Express Authority

The explicit power given by a party to someone, allowing them to act on the party's behalf, often found in legal and organizational contexts.

Implied Authority

Authority of an agent that is not explicitly stated but is implied by the agent's actions or the circumstances of the task.

Terminate

To bring something to an end or conclude its operation.