17
QuizMultiple Choice

Investing and Financial Markets — Unit test

Question 17 • Personal Finance - EL3403

How do bank loans help the nation’s economy?

Answer
T
They ensure consumer spending and confidence.
T
They ensure the success of new businesses.
T
They allow businesses to expand and improve.
T
They allow consumers to quickly pay off debts.

Explanation

Bank loans provide businesses with money to invest in equipment, facilities, staff, or other improvements. This can help businesses grow and operate more effectively, so the best answer is “They allow businesses to expand and improve.” Loans do not guarantee consumer confidence or the success of a new business.

AI-written and checked against the verified answer.

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