Question

“Banks Giving Fewer Loans”–News headline

How could you best explain this quote?

This headline is a quote from a bank owner hoping to increase business. It shows the money supply is increasing.
The statement reveals that growth of the economy is slowing down. It shows that the money supply is decreasing.
A reporter is claiming that banks are having problems but the economy is growing. The money supply is increasing.
It is a sign that the economy is growing and expanding as a result of bank practices. The money supply is decreasing.

Answer 1

By lowering the reserve requirements, banks are able to loan more money, which increases the overall supply of money. But, by raising the banks reserve requirements, the money supply could decrease. If banks are giving fewer loans in this title I would say their money has decreased. There is no sign of economic growth based on reading the quote, I think the best answer would be B.