What Is a Possible Reason Behind Restricted Supply of Spot

question 65

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.

---

Definitions:

Contract Rights

Contract rights refer to the entitlements and obligations that are legally binding between parties as stipulated in a contract.

Revocability

The ability to nullify, cancel, or repeal an agreement or contract.

Assignments

The transfer of rights or property from one party to another, often used in the context of contracts or legal agreements.

Promisor

A party in a contract who has agreed to perform a duty or obligation to another, known as the promisee.