Which of the Following Is NOT Evident During a Credit

question 92

Multiple Choice

Which of the following is NOT evident during a credit crunch?

• A) The Fed tightens the money supply.
• B) There are higher business requirements for funds.
• C) A decrease in interest rates occurs.
• D) Massive withdrawals from savings deposits occur.

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Definitions:

Executive Order

An executive order is a directive issued by a head of state or government, typically the President, that manages operations of the federal government.

Nation-State

A sovereign state whose citizens or subjects are relatively homogeneous in factors like language or common descent.

Economic Development

The process by which a nation improves the economic, political, and social well-being of its people, often measured by increases in per capita income, reduction of poverty, and improvement of quality of life.

Tariff Reduction

The process of lowering taxes imposed on imported goods, typically to encourage trade between countries.