What Is Seen as a Possible Reason Behind Restricted Supply

question 42

Multiple Choice

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

• A) Expansionary monetary policy actions of the Reserve Bank of Australia.
• B) FI's increased aversion toward lending during tight monetary conditions.
• C) Low aggregate demand from borrowers to take down loan commitments.
• D) Decrease in cost of funds.

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