Question

There is a situation in which there is an extreme fall of demand for loans. What should be done by banks in such a situation?

A Increase the liquidity Correct Answer Incorrect Answer
B Sell government securities Correct Answer Incorrect Answer
C Increase the prime rate Correct Answer Incorrect Answer
D Change their portfolio Correct Answer Incorrect Answer
E None of these Correct Answer Incorrect Answer

Solution

When there is an extreme fall of demand for loans; banks shall increase the liquidity in such a situation.

Practice Next
×
×