Northwest Resources, Inc., and Midwest Commodities Corporation are exporting firms that join together to export a line of products. Northwest Resources and Midwest Commodities apply to Commerce Bank for a loan to fund their effort. Under federal law, Commerce and other U.S. banks are

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Answer:

a. encouraged by credit guaranties to lend such funds

Explanation:

Under federal law, Commerce and other U.S. financial institutions such as bank are motivated by credit guaranties to lend funds to business firms such as Northwest Resources, Inc., and Midwest Commodities Corporation in other to ensure businesses do not collapse due to lack of funds and this in turn ensure money circulation and job creation and sustainability.

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