ADL lenders recognize that too much of what may lead to significant overbuilding and an excess supply of space in a local market?
A)Speculative,closed-ended construction lending
B)Speculative,open-ended construction lending
C)Planned,closed-ended construction lending
D)Planned,open-ended construction lending

Question

Quizplus · Accepted Answer

Speculative, open-ended construction lending poses a higher risk of overbuilding and excess supply of space in a local market, as there is no predetermined cap on the amount of construction lending provided. Closed-ended construction lending, on the other hand, has a set limit on the amount of funding provided for a particular project, and planned construction lending involves financing for projects with predetermined demand and occupancy projections.

ADL Lenders Recognize That Too Much of What May Lead