Banks Are Said to Ration Credit When They Refuse to Lend

question 38

Multiple Choice

Banks are said to ration credit when they refuse to lend above a certain interest rate. The purpose of such a policy is to minimize _____ of lending.

• A) adverse selection problems
• B) moral hazard problems
• C) transactions costs
• D) all of the above

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Definitions:

Cytotoxic T cells

A type of immune cell that kills cancer cells, cells that are infected with viruses, or cells that are damaged in other ways.

MHC class I

Molecules found on the surface of all nucleated cells that present peptide fragments derived from the cell's internal proteins to the immune system.

Intracellular Viruses

Viruses that exist and replicate inside the cells of a host organism.

Immunoglobulin

A class of proteins comprising antibodies that play a central role in the immune response by identifying and neutralizing pathogens.