CFA Practice Question

There are 341 practice questions for this study session.

CFA Practice Question

When the Federal Reserve lowers the federal funds rate, the quantity of money ______ and the supply of loanable funds ______.
A. decreases; increases
B. increases; decreases
C. increases; increases

User Contributed Comments 1

User Comment
renataa Why supply of loanable funds increases? If the interest rates are low, why banks would want to lend more if they make less out of the interest payments? I understand that demand for loans will increase but not the supply.. I am missing something here
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