What happens when the central bank increases the bank rate in an economy

Economics

JAMB 2022

A. borrowing is discouraged
B. customers increase their borrowing
C. banks can increase their lending
D. money supply increases

Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts

WAEC and NECO CBT Software for Computers and Laptops - Candidates, Schools, Centres, Resellers - 100% Offline -Download Now

Correct Answer: Option A

Explanation

Central bank discourage borrowing when bank rate is increased. Bank rate is one of the ways the central bank control money supply in an economy. If the bank rate is high, the supply of money will fall and vice versa.

Previous Next

Go back to Econs classroom

Report an Error Ask A Question Download App

WAEC and NECO CBT App for Mobile Devices - Candidates, Schools, Centres, Resellers - 100% Offline -Download Now

Your School's Whatsapp Group - Join Us now

Contributions ({{ comment_count }})

Please wait...

{{ settings.no_comment_msg ? settings.no_comment_msg : 'There are no comments' }}

Quick Questions

what is isoelectronics series? Answer this

2 Answers · Chemistry · 1 day ago
what is the cut off marks for lafia federal university? Answer this

1 Answers · 1 day ago
49. Fill in the blank space with the correct word(s), from the options lettered A-D. In the sentence "The girl... Answer this

4 Answers · 2 years ago

What happens when the central bank increases the bank rate in an economy

Correct Answer: Option A

Explanation

Contributions ({{ comment_count }})

Please wait...

Modal title

Report

Block User

{{ feedback_modal_data.title }}

Quick Questions

Post your Contribution

Sign In