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How does the Federal Funds Rate affect consumers looking to take out a loan?

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Answer:

Federal Funds Rate affects consumers looking to take out loan by ultimately making an impact on the rates of interest charged by the banks.

Step-by-step explanation:

The commercial banks in the country borrow money from Federal Reserve whenever need be. The Federal Reserve charges the banks that borrow money from it a certain rate of interest. When rate of interest charged by Federal Reserve in lowered, it culminates in banks lowering their interest rates which directly affects consumers' decision of taking a loan positively. The vice versa is also true.

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