Banks are said to ration credit when they refuse to lend above a certain interest rate. The purpose of such a policy is to minimize _____ of lending.
A) adverse selection problems
B) moral hazard problems
C) transactions costs
D) all of the above

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The Answer of Banks are said to ration credit when they refuse to lend above a certain interest rate. The purpose of such a policy is to minimize _____ of lending.
A) adverse selection problems
B) moral hazard problems
C) transactions costs
D) all of the above

Banks Are Said to Ration Credit When They Refuse to Lend