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Lena [83]
3 years ago
5

The housing market has come to a standstill and the government wants to encourage first-time home buyers to make housing purchas

es. What action can the Fed take that will most likely result in more first-time home purchases?
decrease interest rates

sell bonds to commercial banks

increase reserve requirements

increase interest rates
Business
1 answer:
leonid [27]3 years ago
7 0
The first one I think interest aways make ppl second guess especially if it's high
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Answer:

Explanation:

The discount rate is the interest rates on loans that the Federal Reserves makes banks. Banks occasionally borrow from the Federal Reserve when they find themselves short on reserves. A higher discount rate decreases banks' incentives to borrow reserves from the Federal Reserve, thereby reducing the quantity of reserves in the banking system and causing the money supply to fall

The federal funds rate is the interest rate that banks charge one another for short term loans. When the Federal Reserve uses open-market operations to buy government bonds, the quantity of reserves in the banking system increases, banks' demand for borrowed reserves declines , and the federal funds rate decreases.

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Correct Answer:

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What examples best demonstrate likely tasks for Distribution and Logistics workers? Check all that apply. Stacy supervises worke
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