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15 Mar 2026, 19:00
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Difficulty:
15%
(low)
Question Stats:
86% (01:28) correct
14%
(02:13)
wrong
based on 147
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Conventional wisdom would suggest providing aid to small businesses first during a recession because they are at the greatest risk of collapsing if they encounter a financial crisis. The current recession poses especially harsh risks to small businesses and almost none to financial institutions, particularly banks. Nevertheless, economic experts are recommending providing aid to banks first rather than to small businesses.
Which of the following, if true, provides the strongest reason for the economic experts’ recommendation?
A. Banks are vulnerable to financial crisis when their revenue streams are severely impacted by other factors.
B. Banks are no more likely than small businesses to be able to weather a recession if they have not experienced a previous recession of similar magnitude.
C. The aid received by banks during the previous recession will be of no benefit during the current recession.
D. Small businesses that successfully weather a financial crisis are likely to develop sound strategies for overcoming at least some major financial challenges that they have not faced thus far.
E. During recessions, in the absence of aid, banks generally put stringent limits on the disbursement of loans, which are essential for small businesses to function.
Which of the following, if true, provides the strongest reason for the economic experts’ recommendation?
A. Banks are vulnerable to financial crisis when their revenue streams are severely impacted by other factors.
B. Banks are no more likely than small businesses to be able to weather a recession if they have not experienced a previous recession of similar magnitude.
C. The aid received by banks during the previous recession will be of no benefit during the current recession.
D. Small businesses that successfully weather a financial crisis are likely to develop sound strategies for overcoming at least some major financial challenges that they have not faced thus far.
E. During recessions, in the absence of aid, banks generally put stringent limits on the disbursement of loans, which are essential for small businesses to function.
15 Mar 2026, 21:56
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Option E here talks about how small businesses are indeed dependent on the banks. So first providing aids to banks is thus justified or the small businesses would not even thrive and thus reasons out the paradox properly.
ExpertsGlobal5
15 Mar 2026, 23:04
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conventional wisdom suggest providing aid to small businesses first during recession.
reason-they are at greater risk of collapsing if encounter financial crisis.
current recession poses big risks to small businesses and almost none to financial institutions.
conclusion- experts says provide aid to banks first than to small businesses.
A we dont know how much their revenue is impacted yet. so reject.
B wrong comparison.
C wrong comparison again.
D irrelevant here.
E if bank put heavy restriction and regulations on small businesses when they are not having any aid, it makes more difficult for small businesses to survive and they will eventually die. so it make more sense to help bank first here.
reason-they are at greater risk of collapsing if encounter financial crisis.
current recession poses big risks to small businesses and almost none to financial institutions.
conclusion- experts says provide aid to banks first than to small businesses.
A we dont know how much their revenue is impacted yet. so reject.
B wrong comparison.
C wrong comparison again.
D irrelevant here.
E if bank put heavy restriction and regulations on small businesses when they are not having any aid, it makes more difficult for small businesses to survive and they will eventually die. so it make more sense to help bank first here.
ExpertsGlobal5
