Which of the Following Are Recommended If You Loan Money

question 21

Multiple Choice

Which of the following are recommended if you loan money to a friend or relative?

• A) Charge a market rate of interest.
• B) Have a lawyer draft a loan contract.
• C) Put the agreement in writing.
• D) Make the loan due within one year or less.
• E) All of the above

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Definitions:

Esteem Needs

in Maslow's hierarchy of needs, the fourth level, including self-esteem, confidence, achievement, respect of others, and respect by others.

Safety Needs

According to Maslow's hierarchy, these are the second tier of human needs, including security and protection from physical and emotional harm.

Physiological Needs

Basic elements necessary for human survival and function, such as air, water, food, shelter, and sleep.

Self-Actualization Needs

The highest level in Maslow's hierarchy of needs, representing the pursuit of realizing one's full potential and seeking personal growth and peak experiences.