Answered

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This chart shows a sequence of causes and effects in how banking can affect society. Complete the chart by selecting the correct word.

First

Second

Third

Fourth

Fifth

Sixth

Seventh

Eighth

The Fed reduces interest rates.

Banks will make (more or fewer?) loans.

The money supply (increases or decreases?).

People and businesses are (more or less) likely to spend and borrow money.

The number of jobs will (decrease or increase?).

People will buy (more or fewer?) cars, homes, and fun stuff.

Growth of the economy speeds up.

Inflation will (decrease or increase?).



Sagot :

The banking sector provides the money to the people and is the supplier of credit. If the interest rates are reduced then, the bank will grant more loans.

What are interest rates?

Interest rates are the amount of loan that is levied by the loan providers as interest in an annual percentage to the borrowers.

If the interest rates are decreased by the fed then the bank will grant more loans, and the supply of money will increase.

The borrower and spending of money in business will become more and lead to increased job opportunities. The increased incomes and jobs will result in more purchasing of homes, cars, etc.

Therefore, the economy will increase, and the inflation rate will decrease.

Learn more about interest rates here:

https://brainly.com/question/15716382

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