Credit Rationing Refers to

question 9

Multiple Choice

Credit rationing refers to

• A)the increase in the interest rate that occurs when the demand for credit increases.
• B)the increase in the interest rate that occurs when the supply of credit increases.
• C)the increase in the interest rate that occurs when the supply of credit decreases.
• D)a restriction in the availability of credit.

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Definitions:

Statute of Frauds

Legal regulation requiring certain kinds of contracts to be written and signed to be enforceable.

Anticipatory Agreement

A contract in which the parties acknowledge and accommodate the future performance of an obligation before its due.

Shareholders

People or organizations holding at least one share in a corporation, thus acquiring specific rights and stakes within the business.

Investor-Owners

Individuals or entities that own investment assets, potentially including stocks, bonds, or real estate, aiming to earn a return on their investments.