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As rates on these market rates rise, so do the rates that banks charge.

As rates on these market rates rise, so do the rates that banks charge.

Submitted by • May 28, 2018 www.sccaforums.com

As rates on these market rates rise, so do the rates that banks charge. Other loans and rates include government-backed loans such as mortgage-backed securities (MBS), student loans and small business loan rates (SBA loans), the last of which are partially backed by the government. When the government has your back(ing), loan rates tend to be lower and are used as the basis for other loans made to consumers and businesses. Of course, this can lead to reckless lending and moral hazards when borrowers assume the government will bail them out when a loan goes bad.

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Voted by harrymarry

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