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    Financial Markets and Institutions Study Set 1
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    Exam 23: Risk Management in Financial Institutions
  5. Question
    Credit Rationing Occurs When Lenders Charge Higher Interest Rates on the Loans
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Credit Rationing Occurs When Lenders Charge Higher Interest Rates on the Loans

Question 14

Question 14

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Credit rationing occurs when lenders charge higher interest rates on the loans they make to riskier borrowers.

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