Which of the following scenarios would be most likely to cause a small bank to be less willing to loan money to small businesses in a community?

A. If the bank cannot sell the loan to some other bank.
B.If the bank cannot make profit on the loan.
C.If the customer has too much in savings.
D.If the community cannot grow from the loan.

Respuesta :

B. The banks are in business to make money. They have to be able to make money in order to survive. 
So, the correct answer would be B-If the bank cannot make profit on the loan. 

A modest loan is not the same as an overdraft. Small loans offer consumers a preset amount that they must repay over a certain period of time with monthly repayments.

Can small banks give loans?

They are frequently offered over a specified amount of time and are a quick and easy way to obtain the necessary funding. Bank loans can be tailored to the needs of the business and can be repaid in capital/principle or interest-only.

Many banks offer small business loans with no collateral requirements to their customers. As a result, firms that get such loans are less likely to lose their assets if they fail to return their loans on time.

Thus, Option B is also correct as Banks are in the process of making money. In order to exist, they must be able to earn profit.

For more information about Small Banks refer to the link:

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