What Is a Possible Reason Behind Restricted Supply of Spot

question 113

Multiple Choice

What is a possible reason behind restricted supply of spot loans to borrowers during a credit crunch?

• A)Expansionary monetary policy actions of the Federal Reserve.
• B)FI's increased aversion toward lending.
• C)Shift to the right in the loan supply function at all interest rates.
• D)Low aggregate demand from borrowers to take down loan commitments.
• E)Decrease in cost of funds.

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Definitions:

Maintaining Goodwill

The effort to preserve or enhance positive relationships and reputation with others, often through ethical behavior and communication.

Buffers

Statements or elements in communication that soften the impact of a message, often used to prepare the recipient for bad news or criticism.

Apologize

Expressing regret or sorrow for having wronged someone, often as a way to repair a relationship.

Negative Messages

Communications that deliver unfavorable, disappointing, or unwanted news to the recipient.