which statement describes how borrowers will most likely benefit when the fed reduces reserve…
which statement describes how borrowers will most likely benefit when the fed reduces reserve requirements?\no loan requirements will likely be relaxed.\no interest rates will likely decrease.\no housing prices will likely decrease.\no investment opportunities will likely improve.
Answer
Brief Explanations:
When the Fed reduces reserve - requirements, banks have more money to lend. This increases the supply of loanable funds in the market. According to the law of supply and demand, an increase in the supply of loanable funds leads to a decrease in the price of borrowing money, which is the interest rate.
Answer:
Interest rates will likely decrease.