Which of the Following Is a Possible Drawback of a Bank

question 76

Multiple Choice

Which of the following is a possible drawback of a bank run?​

• A)​It leaves the banks with excess reserves.
• B)​It leads to a fall in investment activities because of lack of loans available to business firms.
• C)​It leads to a fall in the demand for loans by the business firms.
• D)​It leads to an excessive increase in the supply of money by the banks.

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Definitions:

Growth Strategy

A plan of action designed to increase the size, revenue, market share, or profitability of a business through expansion efforts, product development, market penetration, or acquisition.

Diversification

A risk management strategy that involves adding a wide range of investments, products, or markets to a portfolio or business model.

Market Development

Strategies aimed at finding new markets or expanding existing markets for a product or service to increase sales and market share.

Product Development

The process of bringing a new product or service to market, from the initial idea through design, manufacturing, and marketing.