What is a surplus? What is a shortage? What will be an ideal ...

[kellyjaisingh]

What is a surplus? What is a shortage?
 
  What will be an ideal response?

Question 2

In 2015, some banks in Europe had to make interest payments to borrowers rather than receive interest payments from borrowers. Which of the following statements describes this situation?
 
  A) For these banks, the loans increased required reserves.
  B) For these banks, the loans were liabilities instead of assets.
  C) These banks were receiving negative nominal interest rates on these loans.
  D) All of the above are correct.

[chereeb]

Answer to Question 1

A surplus is a situation in which the quantity supplied is greater than the quantity demanded. A shortage is a situation in which the quantity demanded is greater than the quantity supplied.

Answer to Question 2

C

[kellyjaisingh]

Thank you

[chereeb]

No problemo