Business
Business, 19.11.2019 04:31, lilybear1700

Credit rationing. a bank in your area - 1st anthill bank - is offering home mortgages. you learn that a loan applicant with $50,000 annual income and cash for a $20,000 downpayment, can receive a $100,000 home loan with an 8% interest rate. your annual income is $50,000 and you only have enough cash for a $10,000 downpayment. suppose that you apply for a $100,000 loan from 1st anthill. the loan officer reviews your financial information and will only lend you the funds at an interest rate of 10%. based on the information provided, is there credit rationing in this scenario? clearly explain why or why not

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Credit rationing. a bank in your area - 1st anthill bank - is offering home mortgages. you learn tha...

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