A loan officer uses a credit scoring system to
A) compare the interest rate on a loan to interest rates on other assets with comparable risk.
B) keep track of the fraction of a bank's assets tied up in loans to a single individual or business.
C) predict statistically whether an individual is likely to default on a loan.
D) match any particular loan with the deposits being used to fund it.
C
You might also like to view...
In the classical model, fiscal policy is both ineffective and unnecessary
a. True b. False
Andrew Carnegie, Steven Jobs and Sam Walton were all innovators who are also considered _____________.
Fill in the blank(s) with the appropriate word(s).
Since 1925, the longest recession in the United States lasted:
A. 120 months. B. 43 months. C. 60 months. D. 21 months.
P-TV and QRS-TV are trying to decide whether to air a sitcom or a reality show in a given time slot. Viewers like both sitcoms and reality shows, but sitcoms are more expensive to produce than reality shows since real actors need to be hired. QRS-TV makes its decision first, and then P-TV observes that choice before making its decision. Both stations know all of the information in the decision tree below. 
Suppose QRS-TV enters into an agreement with P-TV that gives QRS-TV the exclusive right to air a reality show during this time slot. QRS-TV would have to pay P-TV ________ in order to persuade P-TV to enter into this agreement.
A. more than zero, but less than $5 million B. at least $10 million C. nothing D. at least $5 million