The rate of interest change on loans depends largely on
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Correct Answer: Option A
Explanation:
Interest rates are determined, in large part by central banks who actively commit to maintaining a target interest rate. They do this by using the open market operations. To discourage borrowing, interest rates would be set high and set low to encourage lending. Therefore interest rates are determined mainly by the prevailing exchange rate
Interest rates are determined, in large part by central banks who actively commit to maintaining a target interest rate. They do this by using the open market operations. To discourage borrowing, interest rates would be set high and set low to encourage lending. Therefore interest rates are determined mainly by the prevailing exchange rate