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Under Risk-premium Analysis, if the borrower increases its loan amount from 10 million to 100 million, the lending outcome is not impacted. Is this statement
Under Risk-premium Analysis, if the borrower increases its loan amount from 10 million to 100 million, the lending outcome is not impacted. Is this statement true or false? If this statement is true, please explain why banks are still using this method. If this statement is false, explain why.
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