angievlqz4338 angievlqz4338
  • 02-01-2020
  • Business
contestada

A higher Discount Rate tends to ___________ the price of loans because the overall supply of bank reserves tends to be smaller..

Respuesta :

beritop1089
beritop1089 beritop1089
  • 10-01-2020

Answer:

decrease

Explanation:

Discount rates on loans have an inverse relationship with loan prices; if the rate increases, the price will decrease and vice versa. In this case, a higher discount rate will decrease the price of loans as excess reserves in commercial banks and other lending institutions get smaller. This reduces the overall money supply in the economy.

Answer Link

Otras preguntas

how do you slove a slope problem
Simplify the expression below 5+3*2-4^2*|-2| A) 43 B) 48 C)-16 D)-21
Kenya has a _______ government, meaning the governmental authority is concentrated in a single main body. presidential federal unitary confederate
Dena is biking down a 9/10 mile bike trail. She stops to greet a friend after biking 1/3 of a mile. How much farther does she need to travel? Draw a picture and
If 1 kilogram = 2.206 pounds, how many pounds are in a gram?
1.) How are Hindu and Buddhist beliefs similar? a.) Nirvana is a Buddhist belief in freeing the soul from the cycle of reincarnation, which is a Hindu belief
Describe the conflict Gawain faces in the castle?
What's 20 over 100 as a percent?
International events have no influence on the business cycle. True or False?
Kenya has a _______ government, meaning the governmental authority is concentrated in a single main body. presidential federal unitary confederate