The Greatest Constraint Faced by Banks Considering the Alternative of Lending

question 10

Multiple Choice

The greatest constraint faced by banks considering the alternative of lending to Bangladeshi villagers is:

• A) not having qualified loan officers to make the loans.
• B) having limited funds available for loans.
• C) not being able to determine appropriate currency exchange rates.
• D) counterfeit Carfax reports that make it difficult to properly assess collateral.

Recognize the relationship between accounting practices and professional judgement.

Understand the role and development of normative theories in accounting.

Comprehend the components and consequences of agency costs, including monitoring and bonding costs, and residual losses.

Understand the economic assumptions underlying positive accounting theory, including the rational economic person assumption.

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