Credit Rationing by an FI

question 86

Multiple Choice

Credit rationing by an FI

• A)involves restricting the quantity of loans made available to individual borrowers.
• B)results from a positive linear relationship between interest rates and expected loan returns.
• C)is not used by FIs at the retail level.
• D)involves rationing consumer loans using price or interest rate differences.
• E)is only relevant to banks.

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Definitions:

Dilation Stage

A phase of labor during childbirth where the cervical opening dilates to allow passage of the baby.

Labor and Delivery

The process involving the stages of childbirth, from the onset of labor through the delivery of the baby and placenta.

Benign Uterine Tumor

A non-cancerous growth in the uterus, often referred to as a fibroid, that does not spread to other parts of the body.

Fibroma

A benign tumor made up of fibrous or connective tissue.