A sharp decline in the stock market means that the ________ of corporations has fallen making lenders ________ willing to lend.
A)net worth; less
B)net worth; more
C)liability; less
D)liability; more

Question

Quizplus · Accepted Answer

A sharp decline in the stock market means that the net worth (assets minus liabilities) of corporations has fallen, which makes lenders less willing to lend. Less net worth means less collateral and less ability to repay the loan, making it riskier for the lender.

A Sharp Decline in the Stock Market Means That the ________