A Loan Officer Uses a Credit Scoring System to

question 20

Multiple Choice

A loan officer uses a credit scoring system to

• A)compare the interest rate on a loan to interest rates on other assets with comparable risk.
• B)keep track of the fraction of a bank's assets tied up in loans to a single individual or business.
• C)predict statistically whether an individual is likely to default on a loan.
• D)match any particular loan with the deposits being used to fund it.

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Definitions:

Culture

The shared patterns of behaviors, interactions, beliefs, and norms among a group of people that are passed down from generation to generation.

Norm

A standard or pattern of social behavior that is typical or expected within a specific group or society.

Moral Domains

Specific areas of moral judgment that distinguish between types of ethical or moral behavior.

Shweder

Richard A. Shweder, an anthropologist known for his work in cultural psychology and ethnopsychology, particularly regarding moral reasoning.