Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Something is afoot in the world of banking that suggests the economy is not as strong as it looks. Four of the United States largest

Something is afoot in the world of banking that suggests the economy is not as strong as it looks.

Four of the United States largest banks on Friday reported third-quarter results that, for the most part, exceeded Wall Streets expectations.

But a worrisome trend again showed up in the numbers: The banks were not lending at the same rate that they had in recent years. While the economy can grow without strong lending, it may struggle to maintain its strength if loan growth remains lackluster.

... the weak lending growth could be a sign that the economy is losing momentum.

Take mortgages: Rising interest rates are pushing up the cost of mortgages at the same time housing prices in many parts of the economy remain elevated. As a result, demand for mortgages has lessened. Wells Fargos mortgage applications in the third quarter were lower than in the preceding four quarters.

Some companies may be less willing to borrow because their executives are starting to get nervous that President Trumps trade policies and other geopolitical developments could weigh on global growth. ...

Question:

According to the article, which of the following are the reasons for a decrease in bank lending? Check all that apply.

-Lower demand for mortgages

-Rising Interest rates

-Lower interest rates

-Rising demand for mortgages

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management For Public Health And Not For Profit Organizations

Authors: Steven A. Finkler

1st Edition

0130176141, 9780130176141

More Books

Students also viewed these Finance questions

Question

What types of companies use job order costing systems?

Answered: 1 week ago