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2 cards from this section. Quick, good the night before a test.
What is moral suasion?
Think about influence rather than enforcement.
Define credit rationing.
Consider situations of low supply vs high demand.
What is moral suasion?
Think about influence, not force.
True or False: Credit rationing means banks are mandated to lend to all equally.
Consider how banks decide on loans.
Evaluate the effectiveness of moral suasion in different economic conditions.
Consider how trust levels affect responses to guidance.
Critically discuss the implications of direct action on long-term banking relationships.
Think about balance in regulatory actions.
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