Assessing Credit Market Access

Which of the following scenarios best illustrates the situation of an individual who is completely unable to access credit on any terms?

A person with very little wealth who is unable to get a loan on any terms is considered 'credit market excluded'. This situation arises primarily because lenders assume such an individual is fundamentally unwilling to repay, rather than because the lender calculates a high risk of the individual being unable to repay.

Lender's Rationale for Credit Exclusion

Consequences of Credit Market Exclusion

Match each individual's situation with the correct term describing their access to borrowing.

Impact of a Policy on Credit Market Access

A lender is evaluating a loan application from an individual who has no savings, property, or other assets that could be used as security. From the lender's perspective, why is this individual most likely to be completely denied a loan, rather than simply being offered one at a high interest rate?

Evaluating a Policy to Address Credit Exclusion

An individual who is offered a loan but at an interest rate so high that they cannot afford the repayments is considered 'credit market excluded'.

Correlation Between Poverty and Credit Limitations

Credit Constraints and the Employment Path for the Less Wealthy