Credit Rationing by an FI

question 105

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.

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Definitions:

Personal Growth

The process of improving oneself, including one's abilities, knowledge, and character.

Cognitive

Relating to, being, or involving conscious intellectual activity (such as thinking, reasoning, or remembering).

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The highest judicial authority in a country or state, responsible for interpreting the law and deciding on legal disputes.

Inequalities

Situations or circumstances where resources, opportunities, and rights are distributed unevenly or unfairly among different groups of people.