Which of the Following Is NOT a Reason Why Banks

question 32

Multiple Choice

Which of the following is NOT a reason why banks are more willing to lend to some firms than to others?

• A)Banks prefer to lend to firms with more stable cash flows.
• B)Banks prefer to lend to firms with more physical as opposed to intellectual assets.
• C)Banks prefer to lend to firms that remain in a specific geographical region.
• D)All of the above are preferences for banks.

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Definitions:

Economic Collapse

A drastic downturn in the economy characterized by the extreme devaluation of currency, hyperinflation, and failure of key businesses leading to high unemployment and poverty.

Poverty Increased

Refers to the situation where there is a rise in the number of people living below the poverty line, experiencing lack of access to basic needs and resources.

Democracy Viewed

Refers to perspectives or ways of understanding democracy, emphasizing its principles such as freedom, equality, and public participation in decision-making processes.

Military

The armed forces of a country, responsible for defending it against enemies and maintaining public order.