During a period of economic depression, such as has existed for a long period in Japan, a profit-oriented bank will act in such a way that

Question

Quizplus · Accepted Answer

During economic depressions, profit-oriented banks tend to act in ways that can exacerbate the situation. They may become more risk-averse, reducing lending to businesses and consumers, which can lead to a decrease in investment and consumption, worsening the economic downturn.

During a Period of Economic Depression, Such as Has Existed