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Excess & Deficient Demand · Question 49 of 53

Question 49

MediumOriginal question

Read the two statements and choose the correct option.

I. Lowering margin requirements helps to fight deficient demand.

II. Raising the SLR helps to fight deficient demand.

Options for question 49

Show the answer and explanation
CorrectNot quiteAnswer A

Correct answer: A

Explanation

  1. Lower margins let borrowers get larger loans, raising spending. I is true.

  2. A higher SLR locks up more bank funds and cuts lending. II is false.

Concept
Monetary tools for a slump
Typical time
70 s
Your time
—
The rule this testsMonetary measures
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