2020
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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0-0.25%
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1-1.25%
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0-0.50%
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3%
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Detailed explanation-1: -When the Fed cuts interest rates, consumers usually earn less interest on their savings. Banks will typically lower rates paid on cash held in bank certificates of deposits (CDs), money market accounts, and regular savings accounts. The rate cut usually takes a few weeks to be reflected in bank rates.
Detailed explanation-2: -From September to December 2019, the Fed cut interest rates three times. According to Bankrate, the average credit rate dipped from 17.8 to 17.36 percent. You can expect to see this reduction in your annual percentage rate (APR) within a billing cycle or two.
Detailed explanation-3: -The lower the interest rate, the more willing people are to borrow money to make big purchases, such as houses or cars. When consumers pay less in interest, this gives them more money to spend, which can create a ripple effect of increased spending throughout the economy.