Which is a possible benefit of having a good credit history? a) getting a high interest rate on a credit card offer b) obtaining a low interest rate on a loan c) obtaining a savings account d) having a paycheck garnished

The correct answer is B (Low interest rate on loan)

In a market economy, resources tend to flow to activities that provide the greatest returns for the risks the lender bears. Interest rates (adjusted for expected inflation and other risks) serve as market signals of these rates of return.

Although returns will differ across industries, the economy also has a natural rate of interest that depends on factors such as the nation’s saving and investment rates

. When economic activity weakens, monetary policymakers can push the interest rate target (adjusted for inflation) temporarily below the economy’s natural rate, which lowers the real cost of borrowing. To most economists, the primary benefit of low-interest rates is their stimulative effect on economic activity.

By reducing interest rates, the Fed can help spur business spending on capital goods—which also helps the economy’s long-term performance—and can help spur household expenditures on homes or consumer durables like automobiles. For example, home sales are generally higher when mortgage rates are 5 percent than when they are 10 percent.

The second benefit of low-interest rates is improving bank balance sheets and banks’ capacity to lend. During the financial crisis, many banks, particularly some of the largest banks, were found to have too little capital, which limited their ability to make loans during the initial stages of the recovery.

the answer is: guns or butter

hope i

-lavira : )

answer; be sure that the information on file is correct;