asked 104k views
5 votes
Would you rather apply for a loan after the fed lowers increases the discount rate? Why?

1 Answer

4 votes

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.

answered
User Johann Kratzik
by
8.2k points

No related questions found

Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.