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    Financial Markets and Institutions Study Set 1
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    Exam 23: Risk Management in Financial Institutions
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    Credit Rationing Occurs When a Bank
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Credit Rationing Occurs When a Bank

Question 53

Question 53

Multiple Choice

Credit rationing occurs when a bank


A) refuses to make a loan of any amount to a borrower, even when she is willing to pay a higher interest rate.
B) restricts the amount of a loan to less than the borrower would like.
C) does either A or B of the above.
D) does neither A nor B of the above.

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