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What Type of Monetary Policy Raises the Bank Rate

Question 118

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What type of monetary policy raises the bank rate?  


A)  an expansionary policy, because the ratio of excess to total reserves in the banking system is raised 
B)  a contractionary policy, because the banks' costs of borrowing are lowered 
C)  a contractionary policy, because the chartered banks' costs of borrowing are lowered 
D)  an expansionary policy, because allowing banks to charge higher interest rates will increase their willingness to make loans

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