Q. When there is an inflationary trend in the economy, what would be trend in the pricing of the Bank Products?
Answer: Increasing Trend
Notes: During inflation, the cost of goods and services rises, leading banks to increase interest rates on loans and fees for products to maintain profit margins. Historically, central banks raise rates to combat inflation, influencing bank product pricing. For instance, in the 1970s, high inflation led to importantly higher interest rates on loans.