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(...) But doesn't the federal interest rate affect the interest rate used by the credit card companies? I would assume that a cut of the federal interest rate would quickly lead to a similar cut of the interest rate used by the credit companies. (...) (23 years ago, 18-Dec-01, to lugnet.off-topic.debate)
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| | Re: questions on current events
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You've pretty much answered your own question, although the creditors would pay less, they could still charge the same to their own customers. (...) (23 years ago, 18-Dec-01, to lugnet.off-topic.debate)
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(...) Do you mean that the _difference_ between the federal interest rate and the interest rate charged by the credit card companies is fixed, i.e. that the payment charged for the service remains the same? Or do you mean that the credit card (...) (23 years ago, 18-Dec-01, to lugnet.off-topic.debate)
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| | Re: questions on current events
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(...) I've read about the shear basics on this subject so what I say about it is certainly arguable, however, maybe I can better clarify what I think I know. A bank can borrow from the federal reserve. There is interest tacked on to what the bank (...) (23 years ago, 18-Dec-01, to lugnet.off-topic.debate)
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(...) This is probably true. But in a market in which the competition works well, I would say that that the federal interest rate _should_ affect the rate offered to the customers. In Norway, there are always some banks which lower their interest (...) (23 years ago, 19-Dec-01, to lugnet.off-topic.debate)
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