For the following questions, please note down the letter (for example: a, b, c, or d) of your response which is most correct and EXPLAIN your answer. Be careful that more than one of the multiple-choice answer options may be correct.

Question Two (5 marks)

Mike has an existing overdraft with a limit of $220,000. He wishes to increase the limit to $300,000 due to an expansion of his financial planning business. So far this business has been very successful. He also wishes to obtain an unsecured personal loan for $75,000 to purchase a new car. He visits The Bank to arrange finance. You Boss is worried that this loan may be risky due to the downturn in the local economy caused by Covid-19, and the potential affect on the financial planning business is currently unknown. Which is the correct answer?

(a) The NCC/NCCP Acts do not apply to either the overdraft extension or the unsecured loan.

(b) The NCC/NCCP Acts do apply, but you should not extend the overdraft because it would be irresponsible.

(c) The NCC/NCCP Acts do apply, but the loan for the new car will be irresponsible.

(d) None of the above answers are correct.