Banks use credit rationing rather than simply raising the interest rate charged borrowers with higher default risks because
A) of fear of adverse selection problems.
B) of interest rate ceilings in many states.
C) of fear of offending the loan applicants.
D) use of credit rationing is encouraged by the Federal Reserve.
A
Economics
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If the Fed reduces the supply of money, the
A. AS curve shifts outward. B. AS curve shifts inward. C. AD curve shifts outward. D. AD curve shifts inward.
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A depreciation is
A) a decrease in the trade deficit. B) a decrease in the value of currency. C) an increase in the trade surplus. D) an increase in the value of currency.
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