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World geography miscellaneous

  1. “Dear Money” means
    1. low rate of interest
    2. high rate of interest
    3. depression
    4. inflation
Correct Option: B

Dear Money, also known as tight money, is money which has to be borrowed at a high 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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