Which customer would present the least risk to the bank during a late contraction in the economy?

The correct choice is the beer and soda distributor, as this type of business typically enjoys more stability during economic contractions compared to other sectors. During economic downturns, consumers often continue to purchase affordable luxuries, and alcoholic beverages, including beer, remain popular. This tendency means that a distributor in this sector is likely to maintain demand, resulting in consistent revenue streams.

Wholesalers and retail businesses, like floor coverings or upscale children's clothing, may see declines in consumer spending as people prioritize essential over discretionary spending. Similarly, a temporary staffing firm might experience volatility since demand for temporary workers can drop significantly in difficult economic conditions. Thus, while each business operates in a different environment, the beer and soda distributor stands out as offering the least risk to the bank during a late contraction due to its resilient market demand for essential and comfort items.