When the Fed raises rates, is this a good sign for businesses? (1 point) Responses No, it lowers purchasing power. No, it lowers purchasing power. Yes, any increase is great news. Yes, any increase is great news. Yes, it means inflation is very low. Yes, it means inflation is very low. No, existing loans will have higher rates.
a. a loan with a high apr
b. a gov bond/ treasury bill.
c. a secured loan
D. an unsecured loan
explain
B. a gov bond/ treasury bill.
When the Fed raises rates, it typically indicates a stronger economy and lower inflation, which can be good news for businesses. As a result, government bonds or treasury bills benefit from higher rates, as they provide higher returns for investors. This can be particularly advantageous for businesses looking to invest in low-risk assets or secure financing for expansion or other projects.