McqMate
| Q. |
What is TRUE of group lending clause? |
| A. | Dealing with groups instead of individuals reduces transaction costs for the bank |
| B. | Group arrangements teach the bank a great deal about who is safe and who is risky |
| C. | Group lending reduces inequality between borrowers: all benefit from the same interest rate |
| D. | Group loans are always cheaper than individual loans |
| Answer» D. Group loans are always cheaper than individual loans | |
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