Which of the Following Is Not a Constraint on Deposit

question 76

Multiple Choice

Which of the following is not a constraint on deposit creation?

• A)The reserve requirement increases.
• B)Businesses and consumers stop using and accepting checks or debit cards.
• C)Banks become less willing to lend money to businesses and consumers.
• D)The interest rate falls,making borrowing less costly for businesses and consumers.

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Definitions:

Marginal Productivity Theory

An economic theory that explains the determination of wages in the factor market, based on the productivity of the marginal unit of labor or other factors of production.

Human Capital

The collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value.

Compensation of Employees

Payments and benefits received by employees in exchange for their labor, including wages, salaries, and benefits such as health insurance.

Total Income

The sum of all earnings or revenues received by an individual or organization before any deductions or taxes.