For Breakdowns in Lending by Financial Institutions to Affect the Volume

Multiple Choice

For breakdowns in lending by financial institutions to affect the volume of funds flowing from savers to borrowers,

A) financial institutions must charge lower interest rates than other lenders.
B) financial institutions must charge higher interest rates than other lenders.
C) alternative sources of funds to borrowers must be imperfect substitutes for loans from financial institutions.
D) financial institutions must be subject to less regulation than other lenders.