Nick wants to buy a new car,and is planning to borrow the money for his purchase from a bank.He read in the newspapers that the Federal Reserve is likely to implement policies in the next few weeks that are designed to stimulate the economy.Nick would probably get a lower interest rate on his car loan if he waits until after the FED implements its new policies.
The Fed usually pursues policies to decrease interest rates when it wants to stimulate the economy.If Nick wants a low interest rate on his car loan,he should wait until the Fed acts to stimulate the economy.

Question

Quizplus · Accepted Answer

The text explicitly states that "Nick would probably get a lower interest rate on his car loan if he waits until after the FED implements its new policies." The Fed lowers interest rates to stimulate the economy, so waiting for them to implement these policies is likely to result in lower interest rates for borrowers like Nick.

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