Which of the following indicates the potential demand for new loans?
A) Low business growth and activity
B) A relatively large percentage of demand deposits
C) Large, unused commercial credit lines outstanding
D) Large deposits held by a single customer
E) The level of uninsured deposits

Question

Quizplus · Accepted Answer

Large, unused commercial credit lines outstanding indicate that businesses have the potential demand for new loans. They have not yet used their existing credit lines, which means they may require additional financing in the future.

Answer: E
 The level of uninsured deposits is not a reliable indicator of potential demand for new loans. Uninsured deposits simply refer to the amount of deposits that are not covered by FDIC insurance. It does not necessarily reflect the borrowing needs or financial health of businesses or individuals.

Which of the Following Indicates the Potential Demand for New