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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