Question

further explain how the pandemic of covid 19 affected the following economic issue in Ghana

1. dividend payment in Ghana

2. monitory policy

3. interest rate

4. cost of fund transfers through mobile money

Answer 1

1.dividend payment reduced as production activities are at very lower level and firm are in losses, so they have earned very very low profit or zero profit thus dividend payment reduced

2 Expansionary monetary policy to increase demand in the Economy and make cycle of income active or multilpirr effect in the economy and comes out from recession conditions

3.bank reduced the interest rate (cut of interest rate to 8-year low from 16% to 14.5%;) to increase credit flow in the economy and try to boost investment and increase demand of household to comes out from recession  

4.cost of fund transfer decreases by The bank ghana to make transaction in the economy and make sure to cycle of money flow and to avoid low transaction in the economy to fight with economy slowdown during covid 19.