One Reason a Bank's Officer May Be Reluctant to Write

question 65

Multiple Choice

One reason a bank's officer may be reluctant to write off a past-due loan is that it will:

• A) increase the bank's liabilities.
• B) decrease the bank's assets and capital.
• C) increase the bank's liabilities and assets, requiring more capital to be held.
• D) make the bank's accounts less transparent.

---

Definitions:

External Traits

Observable characteristics of an individual, which can be physical or behavioral, influenced by both genetic and environmental factors.

External Rewards

Incentives provided from an external source to motivate behavior, such as money, grades, or praise.

Perspective-Taking Skills

The ability to understand a situation or concept from an alternative point of view, including another person's thoughts, feelings, and motivations.

Robert Selman

A psychologist known for his work on the development of social understanding in children and his stages of perspective-taking.