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They require the interest to be paid first.

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10y ago

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What describes the most likely effect of the Fed lowering the discount rates on overnight loans?

An increase in the money supply


What describes the most likely effect of the Fed lowering discount rate on overnight loans?

An increase in the money supply


What describes dis count loans?

Discount loans are financial agreements where a borrower receives a loan amount that is less than the nominal value of the loan, with the difference being the interest or fees deducted upfront. This means the borrower receives a smaller sum than what they are obligated to repay at maturity. Typically used in short-term borrowing, discount loans can be beneficial for quick access to funds, but the effective interest rate can be higher than traditional loans due to the upfront deduction.


Rate the federal reserve charges for emergency loans?

Discount rate


The Federal Reserves discount rate is applied to?

government and consumer loans.


The interest rate the fed charges for overnight loans is known as the?

discount rate (apex)


What is the most likely effect of the Federal Reserve lowering the discount rate on overnight loans?

The most likely effect of the Federal Reserve lowering the discount rate on overnight loans would be an increase in the money supply. an increase in the money supply


Describes installment loans?

They usually require a down payment.


What most likely effect of the Fed lowering the discount rate on overnight loans?

An increase in the money supply


What most likely effects the Fed lowering the discount rate on overnight loans?

An increase in the money supply


What is interest rate the federal reserve charges on its loans?

this answer is different from institution to institutions ... The Fed's board of governors raised the discount rate on loans made directly to banks by a quarter of a percentage point, to 0.75 percent from 0.50 percent ...Discount Rate.


What are the cheapest rates on car loans?

The cheapest rates on car loans are possible when the applicant has a good driving record and no history of accidents or claims. The cheapest rates on car loans can be found on discount loan websites such as My Bank Tracker.