Banks are more willing to lend money to those who have a sizable amount of their own money at risk because
A)They like lending to individuals who usually don't need the money
B)Those with their own money at risk are more likely to only propose viable projects to the bank.
C)Borrowers with their own capital invested are more likely to make payments on any loan that is made.
D)Both B&C

Question

Banks are more willing to lend money to those who have a sizable amount of their own money at risk because
A)​They like lending to individuals who usually don't need the money
B)Those with their own money at risk are more likely to only propose viable projects to the bank.
C)Borrowers with their own capital invested are more likely to make payments on any loan that is made.
D)​Both B&C

Quizplus · Accepted Answer

Banks prefer to lend to individuals who have their own money at risk because it reduces the risk of default. Borrowers who have invested their own capital in a project are more likely to propose viable projects and make payments on any loans, which reduces the bank's risk.

Banks Are More Willing to Lend Money to Those Who