17. Before approving a loan banks require a front-end ratlo that is less than A. 25% B. 28% C. 36% D. 20% A B C D

The correct answer is B. $28\%$.<br /><br />Banks typically require a front-end ratio that is less than 28% before approving a loan. The front-end ratio, also known as the housing ratio, is the percentage of a borrower's gross monthly income that goes towards housing-related expenses, such as mortgage payments, property taxes, and homeowners insurance. By limiting the front-end ratio to 28%, banks aim to ensure that borrowers have sufficient income left over for other living expenses and financial obligations.