Which of the Following Best Characterizes the Lending Strategy of Banks

question 100

Multiple Choice

Which of the following best characterizes the lending strategy of banks?

• A)Banks make most their profits from account fees.
• B)Banks lend mostly to large and familiar companies rather than smaller local firms.
• C)Banks charge borrowers a slightly lower interest rate than they pay to depositors.
• D)Banks lend money both for investment and consumption purposes.

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Definitions:

Violence

Behavior involving physical force intended to hurt, damage, or kill someone or something.

Fair Labor Standards Act

U.S. legislation that establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards in the private sector and federal, state, and local governments.

National Minimum Wage

The lowest salary that employers are legally obligated to pay workers, set by government legislation to ensure a basic standard of living.

Mandatory Overtime

A requirement enforced by an employer that employees work beyond their scheduled hours, often due to operational demands.