When banks offer borrowers smaller loans than they have requested,banks are said to

Question

Quizplus · Accepted Answer

Rationing credit is the practice of offering borrowers smaller loans than they have requested. Banks do this when they have limited funds to lend or want to reduce their risk exposure by lending to fewer customers. The other options, such as shaving credit, rediscounting the loan, or razing credit, are not commonly used terms in banking and do not accurately describe the practice of offering smaller loans.

When Banks Offer Borrowers Smaller Loans Than They Have Requested,banks