Credit May Be Used for Any Purpose and Is Available

question 26

Multiple Choice

Credit may be used for any purpose and is available only to depository institutions that meet specific requirements for financial soundness.

• A) Primary
• B) Secondary
• C) Tertiary
• D) None of the above

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Definitions:

Weak Axiom

A concept in consumer theory that assumes if a consumer prefers a bundle A over bundle B when prices are unchanged, they will not prefer B over A if the price of A decreases and B remains the same or increases.

Revealed Preference

An economic theory that assumes consumers' preferences can be revealed by their purchasing habits.

Prices

The sum of money needed to buy a product, service, or property.

Violates WARP

Refers to an inconsistency in choice behavior that contradicts the Weak Axiom of Revealed Preference, indicating a possible preference reversal.