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Martha Smith of First National Bank Is Attempting to Close

Question 272

Multiple Choice

Martha Smith of First National Bank is attempting to close a large commercial loan to a manufacturing equipment company. In negotiating the interest rate on the loan Martha states that if the company will move some of its demand accounts to the bank, it could get a lower interest rate. Is this wrong?


A) Yes. It violates the anti-tying provisions.
B) Yes. It is a restraint of trade.
C) No, unless moving the accounts is a condition of the loan.
D) No. The bank may condition the loan on the customer placing a deposit in the bank.

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