Critical Reasoning (CR) | Re: Economist: Currently the interest rates that banks pay to borrow

Claim: “Total bank lending to companies is less than it was five yearsago.”

Keyevidence: “Total lending by banks to small and medium-sizedcompanies is less than it was five yearsago.”

Counterpoint: What if the current number of loans to large-sizedcompanies is gigantic? It’s possible that total lending is the same as, if not greater than, it was five yearsago.

Assumption: The total lending to large-sized companies today is not largeenough to offset the decrease in total lending to small-and-medium-companies.



This links back to the paragraph’s first sentence: “Currently the interest rates that banks pay to borrow are higher than the interest rates that they can receive for loans to large, financially strong companies.” In other words, banks are lending money at interest rates that are lower than the interest rates they pay toborrow. If A) is true, then
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Statistics : Posted by snoopypop • on 29 Dec 2023, 08:38 • Replies 2 • Views 602

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