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practice testMultiple Choice

Practice Test

Question 1 • Personal Finance

How do bank loans help the nation’s economy?

Answer
A
They ensure consumer spending and confidence.
B
They ensure the success of new businesses.
C
They allow consumers to quickly pay off debts.
D
They allow businesses to expand and improve.

Explanation

Bank loans give businesses money to invest in equipment, facilities, or hiring when they may not have enough cash on hand. These investments can help businesses expand and improve, supporting economic activity; loans do not guarantee that a new business will succeed.

AI-written and checked against the verified answer.

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