Which of the Following Is Closely Associated with Credit Allocation

question 42

Multiple Choice

Which of the following is closely associated with credit allocation regulation?

• A)Support the FI's lending to socially important sectors.
• B)Transmission of monetary policy from the Federal Reserve to the economy.
• C)Ensure the safety and soundness of the FI.
• D)Prevent discrimination in lending on the basis of age, race, sex, or income.
• E)Protect investors against abuses.

---

Definitions:

Marginal Cost

The additional cost incurred from producing one more unit of a product or service.

Decreasing Rate

A situation where the rate of growth or progression reduces over time.

Total Fixed Costs

The sum of all costs that do not change with the level of output, such as rent, salary, and insurance premiums.

Earrings

Jewelery pieces worn on the ear, typically fastened through a hole pierced in the earlobe or another external part of the ear.