Answer:
Explained below
Explanation:
Federal reserve or The Central Bank of United States maintains economic and financial stability. It is also known as the Fed. It helps in keeping the economy at pace by raising or lowering the interest rates known as cost of borrowing money. It controls the growth rate of economy as well as its size.
When the interest rates are lowered, it directly affects credit card, savings and loans. Mortgages, education loans, auto loans etc are all affected by the cut in interest rates. It has a direct relation to the stock market exchange rates and normal banks interest rates.
