The main reasons) for the declining importance of the commercial and industrial loans relative to mortgage loans is
A) the competition from the venture capitalists
B) the S&L crisis which resulted in the reduction of mortgage lending of the remaining S&Ls
C) the bank's competitive advantage in solving private information problem has diminished
D) both a and b
E) all of the above
Correct Answer:
Verified
Q8: Representations in a loan agreement usually contain
A)borrower's
Q9: Bankers Acceptances are used in international trade
Q10: A loan commitment is
A)a promise by the
Q11: In analyzing a loan application, a borrower's
Q12: Credit card borrowings
A)are usually done on a
Q14: Moral hazard problem associated with bank lending
Q15: A loan covenant stipulates
A)that a borrower has
Q16: In credit card lending, the bank makes
Q17: Risk processing involves
A)pre-lending screening
B)post-lending monitoring
C)loan workouts to
Q18: A bank loan acquired through a spot
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