All rates of interest in a country are influenced by the
ECONOMICS
WAEC 2013
All rates of interest in a country are influenced by the
- A. bank rate
- B. population growth rate
- C. wage rate
- D. mortgage rate
Correct Answer: A. bank rate
Explanation
A bank rate is the interest rate at which a nation's central bank lends money to domestic banks, often in the form of very short-term loans. Interest rates charged by money lenders and financial institutions are influenced by the official bank rates. Banks are prohibited from setting their own interest rates.
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