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:

FTC Adjudicative Proceeding

A legal process by the Federal Trade Commission to resolve complaints against businesses violating consumer protection laws.

Deceptive Conduct

Deceptive conduct involves misleading or dishonest behavior designed to trick or deceive others, often scrutinized in the context of consumer protection and business practices.

Corrective Advertising

A requirement imposed by regulatory agencies where a company must admit to past misleading advertising and correct the misinformation at their own expense.

FTC

The Federal Trade Commission, a U.S. federal agency whose mission is to prevent anticompetitive, deceptive, and unfair business practices.