One Reason Suggesting That Banks May Be Better Than Individuals

question 17

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:

Self-Actualization

Fulfilling or realizing one's natural talents and capacities, believed to be a basic impulse or prerequisite in humans.

Self-Esteem

A person's personal assessment of their own value, which includes thoughts and feelings about themselves.

Affiliation Motivation

The drive to relate to people on a social basis, to belong.

Positive Self-Image

An individual's perception of themselves in a positive light, characterized by confidence, self-esteem, and a healthy recognition of one's strengths and weaknesses.