The Interest Rate Is the Price Borrowers Pay to Borrow

question 171

Multiple Choice

The interest rate is the price borrowers pay to borrow money.Key interest rates are controlled by the Federal Reserve System.If the Federal Reserve acts to reduce interest rates, economists would expect the demand for money to

• A)increase.
• B)decrease.
• C)not change.
• D)be influenced by the interest rate, but with an uncertain effect.

---

Definitions:

State Law

Legislation enacted by individual states that governs within the state's boundaries, as opposed to federal law which governs at the national level.

Franchise Relationships

Legal and commercial bonds formed between a franchisor and franchisee, where the franchisor licenses its trade name and operations model to the franchisee.

Federal Trade Commission's Franchise Rule

A regulation established by the FTC that requires franchisors to provide all potential franchisees with a disclosure document containing important information about the franchise.

Material Facts

Important information that could influence decisions or outcomes in legal, financial, or other professional contexts.