11-63 Credit Rationing by an FI

question 87

Multiple Choice

11-63 Credit rationing by an FI

• A)involves restricting the quantity of loans made available to individual borrowers.
• B)results from a monotonic 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.
• E)is only relevant to banks.

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Definitions:

Subcontraries

In logic, subcontraries refer to a pair of propositions in Aristotelian or traditional square of opposition that cannot both be false, although they can both be true.

Referents

Objects, events, or concepts to which words, symbols, signs, or expressions refer.

Affirmative Proposition

A statement that asserts the truth of something, as opposed to denying it.

Modern View

Contemporary perspective or way of thinking in contrast to traditional views.