which statement describes how borrowers will most likely benefit when the fed reduces reserve…

which statement describes how borrowers will most likely benefit when the fed reduces reserve requirements?\nloan requirements will likely be relaxed.\ninterest rates will likely decrease.\nhousing prices will likely decrease.\ninvestment opportunities will likely improve.

which statement describes how borrowers will most likely benefit when the fed reduces reserve requirements?\nloan requirements will likely be relaxed.\ninterest rates will likely decrease.\nhousing prices will likely decrease.\ninvestment opportunities will likely improve.

Answer

Brief Explanations:

When the Fed reduces reserve - requirements, banks have more money to lend. With more money available for lending, the supply of loanable funds increases. According to the law of supply and demand in the market for loanable funds, an increase in supply leads to a decrease in the price of borrowing money, which is the interest rate. So borrowers benefit from lower interest rates.

Answer:

Interest rates will likely decrease.