Which action can a central bank take to discourage consumers from borrowing more?

Show Answers

Raise the deposits held by commercial banksIncrease deposits in government accountsBoost government expenditureElevate interest ratesNone of the above

Explanation

By increasing interest rates, a central bank makes borrowing more expensive, which tends to reduce the amount of consumer loans taken out. Other options such as altering bank deposits or government spending do not directly influence consumer borrowing behavior in the same way.