3 years ago

PLZ ANSWER!! How does the Federal Reserve affect banking?

1 answer:

3 0

The key rates at which the bank can borrow from other banks and from the Federal Reserve are the Federal Funds rate and the discount rate, respectively. ... When the Fed wants to expand the money supply in the economy, it will typically lower the discount rate in order to decrease the cost of borrowing.

hope this helps you

- nila

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