A decline in bank lending has the most significant effect on
A)small businesses.
B)large businesses.
C)state governments.
D)federal government.

Question

Quizplus · Accepted Answer

Small businesses rely heavily on bank loans for financing and often do not have access to other forms of funding. Therefore, a decline in bank lending can have a severe impact on their ability to grow or even continue operating. Large businesses, state governments, and the federal government typically have other funding sources available and are not as heavily impacted by a decline in bank lending.

A Decline in Bank Lending Has the Most Significant Effect