Question

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Dear money policy refers to :

• A. Where the central bank sets high interest rates
• B. Where the central bank sets low interest rates
• C. Less money is available to banks for lending
• D. None of the above

Answer 1

The correct option is A Where the central bank sets high interest rates

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Dear money policy refers to a monetary policy by the central bank where the central bank sets high interest rates so that credit is not easily available to the general public in order to decrease the rate of inflation in the economy by curbing demand.