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 long did mummification go for poor Egyptians?
Alex makes ceramic bowls to sell at a monthly craft fair in a nearby city. Every month, she spends $50 on materials for the bowls from a local art store. At the
how are the themes and topics different
What are good book to read from war times about family / adoption / giving up of children
what is perpendicular to y= 3x -9 and passes through the point (3,1)
Jonathan has been on a diet since January 2013. So far, he has been losing weight at a steady rate. Based on monthly weigh-ins, his weight, w, can be modeled by
how are the themes and topics different
copy this figure onto grid paper. draw line to divide the figure into 4 congruent polygons. how do you know the ploygons are congruent
If you multiply a number by five and then subtract negative ten, the difference is negative thirty. What is the number?
A certain test is worth 155 points. How many points (rounded to the nearest point) are needed to obtain a score of 65%?