which best describes the economic impact of defaulting on bank loans?\nthe economy suffers because banks…
which best describes the economic impact of defaulting on bank loans?\nthe economy suffers because banks have less money to loan to others.\nthe economy suffers because people have less money to spend.\nthe economy suffers because businesses are scared to take out loans.\nthe economy suffers because people are scared to take out loans.
Answer
Brief Explanations:
When borrowers default on bank loans, banks face losses. This reduces the amount of funds banks have available to make new loans to other borrowers. With less lending, economic activity can slow down as businesses and individuals may not have access to the capital they need for investment and consumption.
Answer:
The economy suffers because banks have less money to loan to others.