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.
Ans: A. Loans to retail customers are more likely to be rationed through interest rates than loan quantity restrictions.
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The use of habit in consumer decision making is associated with _____ decision making
a. routine b. extended c. limited d. generalized
If a financial manager earning interest on a future date were to buy Futures and interest rates end up going down, the position outcome would be:
A) Futures price falls; short earns a profit. B) Futures price rises; short earns a loss. C) Future price falls; long earns a loss. D) Futures price rises; long earns a profit.