WAEC - Economics (2019 - No. 38)
What happens when the central bank increases the bank rate?
Amount of borrowing increases
Amount of borrowing decreases
Supply of money increases
Commercial banks are not affected
คำอธิบาย
The central bank normally raises the lending rates in order to discourage borrowing. When the interest charged on loans is high, fewer people will be willing to borrow money from financial institutions.