17 A Credit Crunch is

a.A sharp drop in lending

b.An improvement of consumer creditworthiness

c.An improvement of business creditworthiness

d.None of the above

18 insolvency risk for commercial bank is the risk

a.Arising when liabilities exceed assets producing negative net worth

b.Arising from fluctuations in the economy aggregate output

c.Arising from excessive customer withdrawals relative to the bank liquid assets

d.Arising from the risk that bank loans will not be repaid