McqMate
| Q. |
"Dear Money" means - |
| A. | low rate of interest |
| B. | high rate of interest |
| C. | depression |
| D. | inflation |
| Answer» B. high rate of interest | |
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Explanation: Dear Money, also known as tight money, is money which has to be borrowed at ahigh interest rate, and so restricts expenditure by companies. This situation can be a result of a restricted money supply, causing interest rates to be pushed up due to the forces of supply and demand. Businesses may have a tough time raising capital during a period of dear money. |
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