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Oliga [24]
2 years ago
8

Would you rather apply for a loan after the fed lowers increases the discount rate? Why?

History
1 answer:
Masja [62]2 years ago
8 0

Answer:

A decrease in the discount rate makes it cheaper for commercial banks to borrow money, which results in an increase in available credit and lending activity throughout the economy. ... The higher the reserve requirements are, the fewer room banks have to leverage their liabilities or deposits.

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