McqMate
| Q. |
Cheap money means - |
| A. | Low rates of interest |
| B. | Low level of saving |
| C. | Low level of income |
| D. | Low level of standard of livtrig |
| Answer» A. Low rates of interest | |
|
Explanation: Cheap money is a loan or credit with a low interest rate, or the setting of low interest rates by a central bank like the Federal Reserve. Cheap money is good for borrowers, but had for investors, who will see the same low interest rates on investments like savings accounts, money market funds, CDs and bonds. Cheap money can have detrimental economicconsequences as borrowers take on excessive leverage. |
|
View all MCQs in
Economics (GK)No comments yet