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World geography miscellaneous

  1. Cheap money means
    1. Low rates of interest
    2. Low level of saving
    3. Low level of income
    4. Low level of standard of living
Correct Option: A

Cheap money is a loan or credit with a low interest rate, or the setting of low interest rates by a central bank like the Federal Reserve. Cheap money is good for borrowers, but bad for investors, who will see the same low interest rates on investments like savings accounts, money market funds, CDs and bonds. Cheap money can have detrimental economic consequences as borrowers take on excessive leverage.



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