fengchenleng48
@fengchenleng48
So how to reduce the cost of capital? There are three common ways: 1. Rate cuts Lowering benchmark interest rates (such as the Federal Reserve’s federal funds rate) will reduce bank lending costs and promote consumption and investment. 2. Quantitative Easing The central bank purchases long-term assets (such as government bonds and mortgage-backed securities MBS), directly injecting funds into the market and increasing the money supply. 3. Expand the table
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