A Larger Proportion of Small and Medium-Size Bank's Loans Tend

question 86

Multiple Choice

A larger proportion of small and medium-size bank's loans tend to be:

• A)lower-interest-business loans.
• B)higher-interest business loans.
• C)lower-interest consumer loans.
• D)higher-interest consumer loans.
• E)None of the options is correct.

---

Definitions:

Disposable Income

Income that is available for saving and spending after income taxes have been deducted.

Consumption

The act of using up goods and services by households or individuals, leading to a decrease in their quantity.

Marginal Propensity

The ratio of a change in consumption (or saving) to a change in income, indicating how much of an income change individuals will spend or save.

Disposable Income

The amount of money available for savings or expenditure after all taxes and social security fees have been deducted.