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The Second National Bank Has Capital and Surplus of $100

Question 109

Multiple Choice

The Second National Bank has capital and surplus of $100 million.The bank has decided that the most that it can loan to the Krumlova Manufacturing Company is $15 million.What factor determining the growth and mix of loans does this most likely reflect for the bank?


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

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