Which is true of Federal Reserve member banks? national banks must be member banks member banks elect the members of the Fed Board of Governors any bank can choose not to be a member bank member bank managers take direction from the managers of their respective district banks QUESTION 18 According to the Loanable Funds Theory, which of the following in isolation) would most likely lead to an increase in interest rates? business growth and expansion in the U.S. slow due to uncertainty regarding Covid-19 the commercial banking sector collectively decides to provide more loans entrepreneurs a regulatory change leaves savings institutions with less capital available for investment the supply of loanable funds is growing much faster than the demand QUESTION 19 Inflation is said to occur whenever the nominal interest rate is higher than the real Interest rate prices are decreasing prices are increasing the relative value of money is decreasing