Ahmad is a recent university graduate. After one year at his new job, he has finally saved enough to buy his first car.

i. Ahmad knows very little about the differences between makes and models. How could he use market signals, reputation, or standardization to make comparisons? (10 marks)

ii. You are a loan officer in a bank. After selecting a car, Ahmad comes to you seeking a loan. Because he has only recently graduated, he does not have a long credit history. Nonetheless, the bank has a long history of financing cars for recent college graduates. Is this information useful in Ahmad 's case? If so, how? (10 marks)