Which of the Following Statements Does NOT Reflect Credit Decisions

question 82

Multiple Choice

Which of the following statements does NOT reflect credit decisions at the retail level?

• A)Loans to retail customers are more likely to be rationed through interest rates than loan quantity restrictions.
• B)Most loan decisions at the retail level tend to be accept or reject decisions.
• C)Mortgage loans often are discriminated based on loan to price ratios rather than interest rates.
• D)Household borrowers require higher costs of information collection for lenders.
• E)Retail loans tend to be smaller than wholesale loans.

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Definitions:

Magnetic Field

A field of vectors representing the effects of magnetism on electric currents, moving electric charges, and materials that are magnetic.

Carbon Dioxide

A colorless gas produced by burning carbon and organic compounds and by respiration, absorbed by plants in photosynthesis.

Binary Mixture

A mixture composed of only two components or substances in any proportion, without any chemical bonding.

Gunpowder

A mixture of saltpeter, sulfur, and charcoal, used historically as a propellant in firearms and fireworks.