What Is Seen as a Possible Reason Behind Restricted Supply

question 29

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)FIs' increased aversion towards 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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Definitions:

Unlearned

Pertaining to behaviors or reactions that are innate and not acquired through learning or experience.

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, emphasizing the impact of consequences on future behavior.

Classical Conditioning

A learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus.

Unconditioned Stimulus

In classical conditioning, an unconditioned stimulus is something that naturally and automatically triggers a response without the need for prior learning.