A bank that specializes in granting loans to firms in a specific line of business:
A. may increase both its operating cost and its credit risk.
B. may increase its operating cost and decrease its credit risk.
C. may decrease its operating cost and decrease its credit risk.
D. may decrease its operating costs and increase its credit risk.
Answer: D
You might also like to view...
Because of their higher value of marginal product
A) the demand curve for high-skilled workers lies to the right of the demand curve for low-skilled workers. B) the demand curve for high-skilled workers lies to the left of the demand curve for low-skilled workers. C) the supply curve for high-skilled workers lies to the right of the supply curve for low-skilled workers. D) the demand curve for high-skilled workers lies to the left of the supply curve for low-skilled workers.
The marginal productivity principle says that a profit-maximizing firm should
a. hire capital until its marginal product is zero. b. hire labor until another worker costs more to hire than she can earn for the firm. c. hire the quantities of capital and of labor at which their marginal products are equal. d. hire capital until its marginal product is negative.