The Importance of the Bank-Lending Channel of Monetary Policy Transmission

question 64

Multiple Choice

The importance of the bank-lending channel of monetary policy transmission:

• A) becomes more important the more important banks are as a source of funds for firms and individuals.
• B) is likely to become more important with the growth of loan brokers and asset-backed securities.
• C) has become more important as technology has solved the problems of information and moral hazard.
• D) none of the answers given is correct.

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