Banks use "credit-risk analysis" to
A) determine the appropriate interest rate to charge borrowers.
B) determine whether to invest in the stock of a corporation.
C) determine the appropriate interest rate to pay depositors.
D) determine the likelihood of an audit by bank regulators.
A
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Refer to the figure above. If the yuan is allowed to float, at exchange rates above E yuan per dollar:
A) the excess supply of dollars in exchange for yuan increases the value of the dollar in the foreign exchange market. B) the excess supply of dollars in exchange for yuan lowers the value of the dollar in the foreign exchange market. C) the excess demand for dollars in exchange for yuan lowers the value of the dollar in the foreign exchange market. D) the excess demand for dollars in exchange for yuan increases the value of the dollar in the foreign exchange market.
The formula is the
A) actual change in the money supply. B) discount rate. C) potential money multiplier. D) federal funds rate.
Using a flow chart, illustrate the effects of a decrease in government spending (G) in a country with floating exchange rates and highly mobile international capital.
What will be an ideal response?
Since 1960 the distribution of income in the United States has
A. become more equal. B. become less equal. C. remained about the same.