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

becky Anderson can ride her bike to the university library in 20 minutes the trip home which is uphill takes 30 minutes if a rate is 8 mph faster on her trip t
Subtract. Simplify and reduce your answers to the lowest terms.
if x/-2=18 then what is x equal to
Find the zeros of the function and 2x² + 72=0
22 points!In this unit we have talked about the differences between chemical and physical changes, take a look at the following images below and decide which on
4. Find the absolute value. |12|
At Malia's swimwear 60 % of the 25 swimsuit styles are bikinis. How many bikinis styles are there?
Why does China not approve of democracy? PLSSS HELP
Need Help ASAP!! Protestant Reformation 1. How did the Protestant Reformation and Glorious Revolution affect North America? 2. How did the Great Awakening affec
2x-7/3-5x+4/5=-x-4/30