Over the last several months, there has been a rapid increase in the number of loans that banks have provided for mortgages and small businesses. This change has raised concerns for the Fed.
Today, the Fed has announced an increase in the interest rates that it is charging banks.
In this scenario, what is the Fed trying to do by increasing interest rates? Check all that apply.
decrease the amount of money that banks have to lend
increase the money supply for banks
reduce the amount of available credit
discourage consumer borrowing by increasing interest rates on loans
encourage banks to loan more money
- Decrease the amount of money that banks have to lend
- Reduce the amount of available credit
- Discourage consumer borrowing by increasing interest rates on loans