All of the Following Statements About Secondary Credit Are True

question 124

Multiple Choice

All of the following statements about secondary credit are true EXCEPT

• A) they are temporary, short-term loans to satisfy seasonal requirements.
• B) the secondary credit interest rate is set above the primary credit rate.
• C) it is intended for banks not eligible for primary credit.
• D) borrowers of secondary credit are less financially healthy.

---

Definitions:

Festinger

Festinger was a social psychologist known for cognitive dissonance theory, which explains the discomfort one feels when holding conflicting beliefs, attitudes, or values.

Attraction

A force that draws individuals together, leading to friendships, romantic relationships, or other forms of social interactions.

Altruistic Acts

Behaviors driven by a selfless concern for the well-being of others, without expectation of reward or benefit.

Cognitive Dissonance

The psychological discomfort experienced when holding two or more conflicting beliefs, ideas, or values simultaneously.