All of the Following Are Reasons That Small Businesses Had

question 38

Multiple Choice

All of the following are reasons that small businesses had difficulty receiving credit in the late 2000s EXCEPT

• A) declining commercial real estate value resulted in a decline in he value of their collateral.
• B) many banks feared adverse selection and moral hazard and thus tightened lending standards.
• C) banks reduce business credit card limits.
• D) banks tried to reduce their reserves making lending more difficult.

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Definitions:

Distributed

The process of allocating or dispersing items, resources, or information among multiple recipients or over various locations.

Constructive Trust

A legal remedy imposed by a court to prevent unjust enrichment, transforming the holder of property into a trustee for the benefit of another party.

Resulting Trust

A trust that arises by implication of law when property is transferred under circumstances suggesting that the transferee was not intended to have the beneficial interest.

Totten Trust

A type of revocable trust created by depositing funds into a bank account with a designated beneficiary, often used for avoiding probate upon the depositor's death.