The discount rate | Money, banking and central banks | Finance & Capital Markets

Let’s take a closer look at our relevant mortgage fee And you then realize About unspecified discounts Tell me These occur together and are associated But in exercise, it is quite different So the vital rate is the amount that you certainly expect It is a federal authorities loan to one another The charge is about So I very own one financial institution That’s banks As traditional, I didn’t write And then the bank.
Let’s say we’ve got more reserves I changed into strolling for bucks, but now I’m going to alternate it with gold So the financial institution is owned by means of gold So my bank. So my bank has now gone to more than two banks Bank 2 also wants gold So 1 bank gives 2 banks 2% interest Let’s borrow So how will the central government intervene? What do you think? This is the rate we were expecting At low interest rates, Chin Operating costs by lending also It can reduce Now how this process works Let’s get started I’ll draw it in purple I’m going to draw this half right here This is what he has to offer And all he has to offer is his business Less is more, less shares Their assets are normal It’s a little different

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