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:

Dividends in Arrears

Dividends on preferred shares that have been declared but not yet paid to shareholders, accumulating until payment is made.

Treasury Stock

Equities that were first made available for purchase and later retrieved by the company, thereby reducing the volume of shares accessible for investment.

Paid-In Capital

Funds raised by a company from investors in exchange for stock, representing the capital provided by shareholders through the purchase of shares.

Reissuance

The process of selling previously issued securities, often shares that have been bought back by the company.