📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!


    Question

    If interest rate reductions fail to increase loan

    demand, it may indicate:
    A High price elasticity Correct Answer Incorrect Answer
    B Low price elasticity Correct Answer Incorrect Answer
    C Strong differentiation Correct Answer Incorrect Answer
    D Effective targeting Correct Answer Incorrect Answer
    E High brand recall Correct Answer Incorrect Answer

    Solution

    Low elasticity means demand is not sensitive to price changes. Why others are incorrect: High elasticity would show demand rise; Differentiation and recall not directly linked; Targeting may not be issue. Banking Example: Customers delaying loans due to economic uncertainty.

    Practice Next
    ask-question