Dear money refers to money that is hard to obtain due to :

Correct option is B

The correct answer is:(b) high rate of interest

Explanation:

• Dear money refers to a situation where borrowing is expensive due to a high rate of interest. It discourages people and businesses from taking loans, thereby reducing the money supply and controlling inflation.

Information Booster:

• Dear money is typically used during tight monetary policy periods.

• It is intended to curb inflation by making credit expensive.

• The opposite term is cheap money, which refers to low-interest-rate scenarios.

• It reduces investments and consumer spending.

• Dear money affects sectors like real estate and automobiles more.

• Central banks like the RBI use interest rate hikes to create a dear money condition.

Additional Information:

• Inflation: Often a reason for dear money but not what it means.

• Depression: Usually associated with low interest and cheap money to stimulate demand.

• Low rate of interest: This describes cheap money, not dear money.