All of the Following Would Be Generally Be Considered Acceptable

question 20

Multiple Choice

All of the following would be generally be considered acceptable commercial loan purposes except:

• A) seasonal cash needs.
• B) paying off other bank debts.
• C) purchasing new equipment.
• D) acquiring another firm.
• E) expanding plant capacity.

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Definitions:

Industrialize

The process by which an economy is transformed from primarily agricultural to one based on the manufacturing of goods.

Market-Oriented Economy

An economy in which decisions regarding investment, production, and distribution are based on supply and demand, and prices of goods and services are determined in a free price system.

Reforms

Changes made to improve a system, law, institution, or practice that are often enacted in response to instances of inefficiency or injustice.

Economic Model

A theoretical construct representing economic processes by a set of variables and a set of logical and/or quantitative relationships between them.