When the Supply of Money Saved Exceeds the Demand for Money

question 18

Multiple Choice

When the supply of money saved exceeds the demand for money, then banks will

• A) increase interest rates to attract more savers.
• B) lower interest rates to discourage savers.
• C) put money on sale by making loans more attractive.
• D) both A and B above.
• E) both B and C above.

---

Definitions:

Geocentric

A viewpoint in international business that sees the world as a potential market with no inherent focus on any specific national market, promoting a global approach to marketing and production strategies.

Regional

Pertaining to or characteristic of a specific geographic area or district within a country, often highlighting local variations.

Polycentric

An approach in international business which assumes that host country cultures are different and businesses must adopt local strategies to succeed.

Geocentric

A worldview or strategy that considers the entire globe as a potential market or action ground, promoting universal standards and approaches.