The demand for heavy loans can cause ____________?
Correct answer: B. deficiencies for banks
- A. excess funds for banks
- B. deficiencies for banks
- C. organized reservation
- D. competitive reservations
Explanation
Heavy loan demand uses up a bank's available lendable funds and can create a deficiency or shortage of funds. It does not produce excess funds for the bank.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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