Question

why was the crop lien system bad for bankers?
a. they often could not find enough customers to lend to.
b. they could not compete with corporations.
c. they could not charge higher interest on loans.
d. they often could not collect on debts.

Explanation:

The crop lien system involved farmers borrowing against future crops. If crops failed (due to weather, pests, etc.) or prices dropped, farmers couldn't repay loans. So bankers often couldn't collect on debts. Option A is wrong as farmers needed loans. Option B is irrelevant as competition with corps isn't the main issue. Option C: interest rates weren't the core problem—collection was. So D is correct.

Answer:

D. They often could not collect on debts.