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

What was the city placed under siege after the first skirmishes of the war of independence
What helps create positive self-esteem in children
Solve for number eight please ! I really need help with this !!!
pleaseee helppp mee aced !!!
A budget lists actual income and expenses to help create a financial plan.true or false
Which contributions did Galileo make to the model of the solar system?
Climate zones and weather answers
Draw the optically active stereoisomer(s) of 1,3-cyclopentanediol.
Which of these statements is an example of Confucianism? Check all that apply. Obeying the law comes before loyalty to one’s family. A ruler must be virtuous
This term means pertaining to or exist at or from the very beginning. A. Primordial B. Accretion C. By-product D. Homogeneous