- This topic has 1 reply, 1 voice, and was last updated 15 years, 11 months ago by .
Viewing 1 post (of 1 total)
-
Posts
-
In short, Mr Yankel, the Fed can affect the rate at which banks charge interest to each other. With a low interest rate, banks will also reduce the rate they will charge other investors. Lower interest rates may help the economy because it encourages business to borrow money to expand their operations, buy equipment etc.
Does that help?
Viewing 1 post (of 1 total)
- You must be logged in to reply to this topic.