A bank has made many loans to several energy companies recently because these companies have had no problem repaying their loans in the past. If energy prices suddenly drop and the companies cannot pay their loans, what is the most likely effect on the local money supply?

The bank would not be greatly affected, and the money supply would not change.

The bank would have a minor increase in business, and the money supply would increase.

The bank would immediately make more loans, and the money supply would increase.

The bank would be negatively affected, and the money supply

Question

A  bank has made many loans to several energy companies recently because these companies have had no problem repaying their loans in the past. If energy prices suddenly drop and the companies cannot pay their loans, what is the most likely effect on the local money supply?

 The bank would not be greatly affected, and the money supply would not change.

 The bank would have a minor increase in business, and the money supply would increase.

 The bank would immediately make more loans, and the money supply would increase.

 The bank would be negatively affected, and the money supply

anonymous · Answer

@Maccrea

anonymous · Answer

I would think D but I'm not 100 percent sure on this one

anonymous · Answer

ok thanks your guess is better then mine lol X)
 im alredy your fan so heres your medal

anonymous · Answer

Haha thank you here yours too

anonymous · Answer

oh thanks for the medal XD your awesome X)

anonymous · Answer

Np thank you, gl on your work