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“Dear Money” means
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- low rate of interest
- high rate of interest
- depression
- inflation
- low rate of interest
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.