A. many banks will shut down their operations
B. customers will borrow more from banks
C. the supply of money may be reduced
D. interest charges by banks will fall
Correct Answer:
Option C – the supply of money may be reduced
Explanation
A rise in the bank rate means that the interest charge from commercial banks will increase their interest which reduce the borrowing by general public and interest rate is high, so the money supply would decrease.
Veterinary medicine is the branch of medicine that deals with the prevention, diagnosis, and treatment…
Anthropology is the scientific study of human beings and their cultures. It encompasses a wide…
Sociology is the scientific study of human society, culture, and behavior. It examines the social…
Social Work is a profession dedicated to helping individuals, families, and communities to cope with…
Religious studies is an academic discipline that explores the beliefs, practices, and history of various…
Public administration is the field of study and practice that focuses on the organization and…