Question 10 (1 point) In the lecture on financial crisis, we discussed a figure on the fraction of loans issued (vertical axis) vs. the ratio of loan size to Jumbo-Loan cutoff (horizontal axis). Where is the screening of borrowers by banks is likely to be the weakest (i.e., laxed)? It is the same everywhere. At loan sizes much larger than jumbo loan cutoff. At loan sizes just above jumbo loan cutoff. At loan sizes just below jumbo loan cutoff. Previous Page Next Page 11