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A fall in the savings rate reduces bank deposits and affects banks' ability to lend. Which dimension of the business environment is involved?

Answer and explanation

Correct answer: Economic dimension

The correct answer is A, the economic dimension. Savings, bank deposits and lending are financial and economic factors; a change in savings can affect the funds banks have available to lend.

Related tags

Business EnvironmentEconomic DimensionSavings And CreditDimensions Of Business EnvironmentBusiness StudiesClass 12 Mcq

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