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.

---

Definitions:

Return on Investment

A financial metric that measures the profitability of an investment by dividing the gain from the investment by its cost.

Productivity

A measure of efficiency that quantifies the amount of goods and services produced per unit of labor, capital, or other resources.

Strategic HRM

Interrelated philosophies, policies, and practices that facilitate the attainment of organizational strategy.

Organizational Survival

The ability of an organization to continue to operate and remain viable over time, often amidst competition and changing market conditions.