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.

Question

Quizplus · Accepted Answer

When the Federal Reserve implements policies to stimulate the economy, it often involves lowering interest rates. This can result in lower interest rates on loans, including car loans. Therefore, Nick would likely get a lower interest rate on his car loan if he waits until after the Fed implements its new policies.

Nick Wants to Buy a New Car, and Is Planning