Question

True of False:

1- US banks are restricted in the amount of money that can be loaned to a particular person or entity.

2- Marx's book, The General Theory of Employment, was influential in his day.

3- A person's FICO score is designed to level the information playing field and mitigate, to some degree, the potential for adverse selection.

Answer 1

1.the given statement is TRUE because there is always a limit to the amount of issuance of the loan to a particular person or entity.

2.the given statement is TRUE because the general theory of employment was influential book and it was effective in his time.

3. Fico score is used by lending companies in order to determine the credit rating of the borrower and credit worthiness of the borrower and it is not an instrument for mitigation of adverse selection.

Given statement is FALSE.