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Goryan [66]
3 years ago
15

How does the Federal Funds Rate affect consumers looking to take out a loan?

Business
1 answer:
Artyom0805 [142]3 years ago
6 0

Answer:

The federal funds rate is the rate at which banks borrow money overnight. When the Fed wants to stimulate the economy, it will lower the short-term funds borrowing rate. In response, banks typically lower the interest rates they charge to consumers for a variety of loans.

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Explanation:

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Another thing they cannot be held liable for is the merchant's inability to get another loan in time because it is assumed that there are other banks that the merchant could have gone to. What they can be held liable for however, is the difference in the types of loans.

The merchant had to get a loan with a higher interest rate because they couldn't honor their agreement so they will pay the difference in interest between their loan and the one the merchant was able to get.

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