Limit Commitment Occurs When

question 61

Multiple Choice

Limit commitment occurs when

• A) collateral is required to get a loan.
• B) one cannot borrow as much as necessary to conduct business.
• C) one cannot be forced to repay a loan.
• D) the bank can sell your loan to another bank.

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Definitions:

Human Capital

The improvement in labor created by education and knowledge that is embodied in the workforce.

College Degree

A certification awarded by colleges or universities to signify that a student has completed a specified course of study, typically representing a higher level of education and expertise.

Stock

In finance, stock represents ownership shares in a company, allowing investors to claim on the company's assets and earnings proportionate to the amount of stock they own.

Economy

A system of production, distribution, and consumption of goods and services among a group of people.