"The Bank of Israel lowered its benchmark lending rate by half a percentage point, the fourth cut in seven weeks, as the global financial turmoil slows economic growth and inflation expectations ease." www.bloomberg.com 11/24/2008
The Bank of Israel's actions ________ bank reserves and have the goal of ________ consumption.

Question

Quizplus · Accepted Answer

The Bank of Israel's actions of lowering its benchmark lending rate would increase bank reserves by making it cheaper for banks to borrow money, which in turn is aimed at increasing consumption by making borrowing more attractive for consumers and businesses.

"The Bank of Israel Lowered Its Benchmark Lending Rate by Half