sample MC Q17 - 56.Which of the following statements does...

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56.Which of the following statements does not reflect credit decisions at the retail level? A) Retail customers are more likely to be rationed by interest rate differences than loan quantity restrictions. B) Most loan decisions at the retail level tend to be accept or reject decisions. C) Mortgage loans often are discriminated based on loan to price ratios rather than interest rates. D) Household borrowers require higher costs of information collection for lenders. E)Retail loans tend to be smaller than wholesale loans. Answer: A 1
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57. Which of the following statements does not reflect a borrower-specific factor often used in qualitative default risk models? A) Reputation is an implicit contract regarding borrowing and repayment that extends beyond the formal explicit legal contract. B) A borrowers leverage ratio is positively related to the probability of default over all levels of debt. C) Firms with high earnings variance are less attractive credit risks than those
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This note was uploaded on 02/22/2009 for the course ECONOMICS 4313 taught by Professor Tsui during the Spring '09 term at HKU.

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sample MC Q17 - 56.Which of the following statements does...

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