Credit histories allow firms to
A) identify high-risk borrowers, so they can be eliminated and interest rates kept down for others.
B) increase the number of credit cards issued, and interest rates go up as a result.
C) increase the number of credit cards issued, and interest rates go down as a result.
D) lower the number of credit cards issued, and interest rates go up as a result.
E) increase market power in the credit card industry, raising interest rates.
A
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Which of the following statements about a monopolist is FALSE?
A) A pure monopolist is the sole supplier of one product, good, or service. B) The monopolist faces a demand curve for the entire market for that good. C) A pure monopolist is not the same as a perfect competitor. D) The monopolist faces the industry demand curve, which is upward sloping.
Answer the question based on the following consolidated balance sheet for the commercial banking system. Assume the required reserve ratio is 12 percent. All figures are in billions of dollars:
Refer to the above data. The maximum amount by which the commercial banking system can expand the supply of money by lending is:
A. $250 billion
B. $350 billion
C. $450 billion
D. $600 billion