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Rural Credit Corporation Lends Money to Sven,a Farmer,and the Owners

Question 3

Multiple Choice

Rural Credit Corporation lends money to Sven,a farmer,and the owners of other agricultural enterprises within its region.To compensate for the higher risk of bankruptcy among its debtors when the prices of agricultural products decrease,Rural Credit can


A) become less selective in granting credit.
B) increase the interest rate charged to a few borrowers.
C) increase the interest rate charged to everyone.
D) require less security (collateral) .

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