Larry wants to buy a new car,and is planning to borrow the money for his purchase from a bank.He has just read in the newspapers that the Bank of Canada is likely to implement policies in the next few weeks that are designed to stimulate the economy,which is currently in a recession.Larry would probably get a lower interest rate on his car loan if he waits until after the Bank of Canada implements its new policies.

Question

Quizplus · Accepted Answer

When the Bank of Canada implements policies to stimulate the economy, it typically lowers the benchmark interest rate. This can lead to lower interest rates for loans, including car loans. Therefore, Larry may get a lower interest rate on his car loan if he waits until after the Bank of Canada implements its new policies.

Larry Wants to Buy a New Car,and Is Planning to Borrow