Lower Interest Rates Which Reduce the Debt-Servicing Burden of Households

question 18

Multiple Choice

Lower interest rates which reduce the debt-servicing burden of households, thus increasing their net worth, is best described by the

• A)bank lending channel.
• B)money channel.
• C)financial market channel.
• D)balance sheet channel.

---

Definitions:

Hypertension

A chronic medical condition where blood pressure in the arteries is persistently elevated, requiring management to prevent further health complications.

Blood Pressure

The force exerted by circulating blood on the walls of the body's arteries, a critical parameter in assessing cardiovascular health.

Secondary Prevention

Efforts and interventions aimed at early detection and prompt treatment of disease or injury to prevent more severe problems developing.

Congestive Heart Failure

A chronic condition in which the heart is unable to pump blood effectively enough to meet the body's needs, leading to symptoms such as shortness of breath and swelling.