what is the implication of high bank rate in the economy
Answers
Answer:
Lower bank rates can help to expand the economy by lowering the cost of funds for borrowers, and higher bank rates help to reign in the economy when inflation is higher than desired.
Explanation:
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Answer: when the bank rate get high the impact and consequences will be inflation in the market
Explanation: the work of the banks in a country is to borrow money from the central bank of country and then give it to the the people and make income by putting interest when they get it back, if in case the bank put heave interest on the banks when they borrow money so the bank rate will also increase and so that the layman or the small people will face problem in taking load and they have to pay high taxes in it and the supply of money in the market will be get reduces.