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Why Is the Debt Limit Ratio and 28/36 Rule More

question 7

Essay

Why is the debt limit ratio and 28/36 rule more important to conservative lenders like Banks and Credit Unions and not so important for lenders like small Finance companies and Payday lenders?


Definitions:

Stimulus Discrimination

The ability to distinguish between similar stimuli and respond differently based on past experiences.

Secondary Reinforcers

Stimuli that acquire their reinforcing properties through association with primary reinforcers and are used to modify behavior.

Biological Needs

Fundamental physical requirements necessary for human survival, including air, food, water, shelter, clothing, warmth, sex, and sleep.

Reinforcing

Strengthening a behavior by providing a consequence that is rewarding.

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