When a Lender Refuses to Make a Loan,even Though Borrowers

question 1

Multiple Choice

When a lender refuses to make a loan,even though borrowers are willing to pay the stated interest rate or even a higher rate,it is said to engage in ________.

• A) specialized lending
• B) strategic refusal
• C) diversified lending
• D) coercive behavior
• E) none of the above

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Definitions:

Compensatory Damages

Monetary damages awarded to a plaintiff to compensate for actual loss or injury.

American Institute of Certified Public Accountants

A national professional organization for Certified Public Accountants (CPAs) in the United States, focused on setting ethical standards and auditing procedures.

GAAS

Stands for Generally Accepted Auditing Standards, which are the guidelines auditors follow to ensure their audits are conducted objectively and consistently.

Privity or Near-Privity Rule

A legal principle requiring a close, direct relationship between the parties involved in a contract for a third party to have the right to sue.