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5 years ago
Banks use credit rationing rather than simply raising the interest rate charged to 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.
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Money, Banking, and the Financial System

Money, Banking, and the Financial System


Edition: 3rd
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