Economics 9708 · AS & A Level · Monetary policy

Monetary policy — practice question

What factors might cause bank lending to fall in a country?

  • Aan increase in commercial banks’ balances with the central bank
  • Ban increase in the liquidity ratios operated by the country’s commercial banks
  • Can increase in the monetary base of the country
  • Dan increase in the volume of liquid assets held by the country’s commercial banks

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