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
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If you put $125 into an account that paid 3.25 percent interest, then how much money would you have in the account after 20 years?
a. $285.83 b. $236.98 c. $202.04 d. $145.65
The Bureau of Labor Statistics produces data on unemployment
a. weekly. b. monthly. c. quarterly. d. yearly.
Among the fundamental concepts in economics are
A) marginalism. B) opportunity cost. C) efficient markets. D) all of the above
When the expected real rate of interest declines, ceteris paribus, we expect:
a. more investment projects will be undertaken. b. lenders will need to lower their average default rate to maintain their profit margins. c. firms will borrow less and cut back on their investment projects. d. individuals will steer clear of equity markets.