O-LevelCommerceCredit7100/11 · May/June 2010 · Q391 Mark
A farmer applies to a commercial bank for a loan to buy a tractor. What will a bank not take into consideration before agreeing to the loan?
Aamount of cash in the farmer's current account
Bcollateral security offered by the farmer
Cfarmer's existing financial commitments
Drate of interest charged by other banks
✓ Correct answer
D: rate of interest charged by other banks
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