You are the managing director of a small local bank. The Fed announces that it is moving
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You are the managing director of a small local bank. The Fed announces that it is moving its federal funds rate target from 2.25% up to 3.0%. How does this impact the interest rates on the business lines of credit and personal loans you make? What would have to happen for you to also change the interest rate you charge on longer-term loans such as mortgages or business loans?
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Answer When the Federal Reserve increases its federal funds rate target from 225 to 30 it generally leads to an increase in interest rates across the economy including the rates on business lines of c...View the full answer
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Related Book For 
Principles Of Economics
ISBN: 9781319330156,9781319419769
2nd Edition
Authors: Betsey Stevenson, Justin Wolfers
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