Credit Rationing Occurs When a Bank

question 53

Multiple Choice

Credit rationing occurs when a bank

• A) refuses to make a loan of any amount to a borrower, even when she is willing to pay a higher interest rate.
• B) restricts the amount of a loan to less than the borrower would like.
• C) does either A or B of the above.
• D) does neither A nor B of the above.

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Definitions:

Confidence Interval

An array of numerical indicators, gleaned from sample statistics, anticipated to harbor the value of an unknown population attribute.

Sample Size

The number of observations or replicates included in a statistical sample, crucial for the validity and accuracy of an experiment.

Degrees of Freedom

The number of independent values or quantities that can vary in the analysis without violating any constraints.

Confidence Interval

A collection of values, resulting from statistical sampling, that is expected to house the value of a non-identified population parameter.