The Second State Bank has less than $100 million in assets and as a result primarily makes real estate loans,other consumer loans and loans to very small businesses.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 size of the lender can determine the growth and mix of loans, as smaller banks like Second State Bank may have limited resources and may not be able to compete with larger banks for large corporate clients or other types of loans. As a result, they may focus on making real estate loans, other consumer loans, and loans to very small businesses.

The Second State Bank Has Less Than $100 Million in Assets