Which of the following is not a constraint on deposit creation?
A. The reserve requirement increases.
B. The interest rate falls, making borrowing less costly for businesses and consumers.
C. Banks become less willing to lend money to businesses and consumers.
D. Businesses and consumers stop using and accepting checks or debit cards.
Answer: B
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
Discouraged workers are included in the calculation of the
i. unemployment rate. ii. labor force participation rate. iii. working-age population. A) i only B) i and ii C) ii only D) iii only E) ii and iii
For simple loans, the yield to maturity
A) is always less than the specified simple interest rate. B) is always greater than the specified simple interest rate. C) is always equal to the specified simple interest rate. D) may be less than, greater than, or equal to the specified simple interest rate, depending on the maturity of the loan.
If the price of automobiles were to increase substantially, the demand curve for gasoline would most likely
A) shift leftward. B) shift rightward. C) remain unchanged. D) become steeper.