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:

Direct Contribution

Direct contribution refers to the specific, measurable impact that an individual or activity has on the achievement of an organization’s objectives or on the completion of a project.

Line Managers

Managers who have direct responsibility over a specific department or team, involved in day-to-day operations and personnel management.

Organisation's Product

The result of a company's efforts, whether it's a tangible good, service, or digital offering, created to fulfill customer needs.

Small Work Group

A limited number of individuals assembled to perform tasks or achieve specific goals, characterized by close interaction and collaboration.