The First State Bank is located in Guyman which is in the middle of the wheat country of Oklahoma and as a result many of its loans are agriculture loans.What factor determining the growth and mix of loans does this fact reflect?
A)Characteristics of the market area
B)Lender size
C)The experience and expertise of management
D)The written loan policy of the bank
E)Bank regulations

Question

Quizplus · Accepted Answer

The fact that many of the bank's loans are agriculture loans reflects the characteristics of the market area, which is in the middle of the wheat country of Oklahoma. This would suggest that there is a higher demand for and reliance on agriculture loans in this area, leading to a growth in and mix of loans that reflect this market need.

The First State Bank Is Located in Guyman Which Is