Loans granted to businesses appear to convey positive information to the market place about a borrower's credit quality,enabling a borrower to obtain more and cheaper funds from other sources.

Question

Quizplus · Accepted Answer

Loans granted to businesses are usually seen as an indicator of creditworthiness, and this positive information can help borrowers secure additional funding at lower costs.

Loans Granted to Businesses Appear to Convey Positive Information to the Market