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
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Frederick W. Taylor argued that worker efficiency could be improved by
a. analyzing in detail the movements required to perform a job. b. offering employees quarterly stock options. c. encouraging employees to form company unions. d. introducing to a 5-hour/day, 7-day/week schedule
The price of old baseball cards rises rapidly with increases in demand because:
A. the supply of old baseball cards is price inelastic. B. the supply of old baseball cards in price elastic. C. the demand for old baseball cards is price inelastic. D. the demand for old baseball cards is price elastic.
In the above figure, the long-run equilibrium price level is
A. 130. B. 110. C. 150. D. not displayed.
An advantage of a swap over futures and options is that
A) they can be written for long periods. B) they are more liquid. C) they carry less default risk. D) there is no need to assess the creditworthiness of participants.