. Fitch Ratings Inc. downgrades banks credit ratings. A. How does this affect borrowers, lenders, and financial institutions? B. What are the implications of this downgrade to the health of the financial system?

. Fitch Ratings Inc. downgrades banks credit ratings. A. How does this affect borrowers, lenders, and financial institutions? B. What are the implications of this downgrade to the health of the financial system?

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter8: Savings,investment And The Financial System

Section: Chapter Questions

Problem 1QR

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Concept explainers

Financial Institutions and Federal Bank

The word financial institution is a kind of business organization that deals with the financial activities of a nation. These activities include accepting deposits, making payments, granting loans and advances, transferring funds, holding shares, providing credits, purchasing and selling foreign exchanges, investments in shares, futures commodities, and many more.

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1. Fitch Ratings Inc. downgrades banks credit ratings.

A. How does this affect borrowers, lenders, and financial institutions?

B. What are the implications of this downgrade to the health of the financial system?

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