If people who want to buy things actually have the money to do so, the theory goes, it gives a truer picture of supply and demand and
lends more accuracy to markets (whereas now, many people don't have the ability to purchase things they want or need, leading the free market to believe that the number of people who want a product is lower than it actually is).
Not exact matches
Recently, the head of the Small Business Administration, Maria Contreras - Sweet, gave a speech at the Center for American Progress where she detailed the agency's expanded use of small business credit scores in an effort to streamline the
lending process, improve
accuracy, ensure fairness and, most importantly, facilitate the provision of
more small loans to the nation's entrepreneurs.
Some people prefer brighter,
more vivid color representation, which ultimately
lends itself to reduced
accuracy.
What it means: Canada's banking regulator is warning the banking sector that the computer models they use to determine how much to
lend use data that are skewed toward making the home look
more attractive by the sellers, which inflates prices and calls into question the
accuracy of the system.