THE PERCENTAGE AT WHICH THE CENTRAL BANKISSUES SHORT-TERM LOANS TO COMMERCIAL BANKS AND ACCEPTS MONEY FROM THEM FOR SHORT-TERM DEPOSITS IS a. interest rate b. CPI c. inflation targeting d. key rate

Question

THE PERCENTAGE AT WHICH THE CENTRAL BANKISSUES SHORT-TERM LOANS TO COMMERCIAL BANKS AND ACCEPTS MONEY FROM THEM FOR SHORT-TERM DEPOSITS IS a. interest rate b. CPI c. inflation targeting d. key rate

Answer 1

The correct answer is d. key rate.The percentage at which the central bank issues short-term loans to commercial banks and accepts money from them for short-term deposits is known as the key rate or the policy rate. This rate is a crucial tool used by central banks to influence monetary conditions in the economy. By adjusting the key rate, central banks can either encourage or discourage borrowing and lending, thereby affecting overall economic activity.

Вопрос

THE PERCENTAGE AT WHICH THE CENTRAL BANKISSUES SHORT-TERM LOANS TO COMMERCIAL BANKS AND ACCEPTS MONEY FROM THEM FOR SHORT-TERM DEPOSITS IS a. interest rate b. CPI c. inflation targeting d. key rate

Решения

Ответ