No sooner was America's credit rating downgraded than China, its biggest creditor, (admittedly by a coincidence of timing) sent its first aircraft-carrier out to sea.

Debtor and creditor overdraw Primarily, the banker-customer relationship is that of debtor and creditor — who is which depending on whether the customer's account is in credit or is overdrawn.

On inventory pledge loan, creditor can screen on borrowers with asymmetric information of ex ante default possibility, when taking into account borrowers' signaling action by acquiring a credit score.