Banks Attempt to Screen Good Credit Risks from Bad to Reduce

question 58

Multiple Choice

Banks attempt to screen good credit risks from bad to reduce the incidence of loan defaults.To do this,banks

• A) specialize in lending to certain industries or regions.
• B) write restrictive covenants into loan contracts.
• C) expend resources to acquire accurate credit histories of their potential loan customers.
• D) do all of the above.

Recognize the factors that lead to the classification of contracts as void, voidable, unenforceable, or illegal.

Distinguish between different types of contracts based on their legality and enforceability.

Identify the role of intention in forming a legally binding contract.

Understand the implications of domestic and commercial agreements on the presumption of legal intent.

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Definitions:

Cyber Fraud

Cyber fraud involves deceptive and illegal activities conducted over the internet, including scams, identity theft, and unauthorized financial transactions.

Sports Memorabilia

Items related to sporting events or personalities that are collected for their historical interest, sentimental value, or potential investment value.

Auction Website

An online platform where goods or services are sold through a bidding process and awarded to the highest bidder.

Highest Bid

The largest amount of money offered for a good, service, or asset in an auction or competitive selling process.