What would be the possible causes of a drop in interest rates? 1. II. III. IV. Increased demand for bank credit Sharp fall in employment An increase in the level of inflation Greater offer of bank credit A. I and II are correct B. II and III are correct C. II and IV are correct D. III and IV are correct These monetary policy measures seek to take money and credit away from the economy. I. The Federal Reserve buys securities on theoren market (open market transactions) II. Increase the rate(Discount rate) III. Reduce the rate IV. Raise the bank reserve requirement A. I and II are correcttos B. I and III are correcttos C. II and IV are correcttos D. III and IV are correcttes It is a "leading" indicator of economic activity: A. Prime rate B. The S&P 500 index (Stock prices) C. Commercial and industrial loans D. GDP (GDP) The capital invested: A. It is the capital of the common partners B. It is the capital of the common and preferred partners C. It is the capital of partners and loans with cost D. None of the above