The answer to this question is B.a restriction in the availability of credit.
Explanation:
Credit restriction occurs when at the prevailing market interest rate, demand exceeds supply, but lenders are not willing to either loan more funds, or raise the interest rate charged, as they are already maximizing profits.
Hence the answer to this question is B.a restriction in the availability of credit.
a. The division’s basic earning power ratio is above the average of other firms in its industry.
Explanation:
All the rest of the option in the question results in less efficiency of the company's division. In order to achieve a better grade Option A is the only choice.
The federal government made the move in order to balance their budget with he notion that with the introduction of the 2 cents on every bank cheques, it will dissuade people from doing bank deposit and switch to currency which will inturn reduce money supply.
