Which of the Following Is True of Lending by Banks

question 129

Multiple Choice

Which of the following is true of lending by banks?

• A)Banks always charge a lower rate of interest on a car loan than on a home loan.
• B)Banks increase their prime rate of lending to protect their loans.
• C)Banks require borrowers to put up collateral to reduce the risk of lending.
• D)Banks discount the present value of loans to reduce the risk of lending.
• E)Banks charge lower rates of interest to people with poor credit ratings.

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Definitions:

Chronic Bronchitis

A long-term inflammatory condition of the bronchi in the lungs, characterized by persistent coughing and mucus production.

Coarse Rhonchi

Low-pitched, rattling lung sounds that can be heard through a stethoscope, often indicating the presence of thick mucus or blockages in the larger airways.

Fine Crackles

Small, abrupt sounds heard in the lungs during inhalation, indicative of abnormalities such as pulmonary fibrosis or heart failure.

Ventricular Fibrillation

A life-threatening heart rhythm that results in rapid, erratic electrical impulses in the ventricles, leading to ineffective pumping of blood.