Banks Use Credit Rationing Rather Than Simply Raising the Interest

question 40

Multiple Choice

Banks use credit rationing rather than simply raising the interest rate charged borrowers with higher default risks because

• A)of fear of adverse selection problems.
• B)of interest rate ceilings in many states.
• C)of fear of offending the loan applicants.
• D)use of credit rationing is encouraged by the Federal Reserve.

Identify the absolute threshold and its significance in sensory processing.

Analyze the role of the pupil in regulating light entry into the eye.

Distinguish between rods and cones in terms of function and location within the eye.

Understand the visual pathway including the optic nerve, fovea, and blind spot.