Reducing the discount rate can influence the economy by:
O A. giving banks an incentive to hold on to large reserves.
B. preventing investors from selling their treasury securities.
C. encouraging businesses to borrow money from banks.
O D. greatly increasing the inflation rate across the economy.

The factors that influence economy are human resources, natural resources, social factors, political factors, and development of technology.

Existence of viable market and stronger research banking is also necessary.

Thus, the correct option is C. encourage businesses to borrow money from banks.

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Reducing the discount rate can influence the economy by: O A. giving banks an incentive to hold on to large reserves. B. preventing investors from selling their treasury securities. C. encouraging businesses to borrow money from banks. O D. greatly increasing the inflation rate across the economy.

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What are the factors that influence the economy?

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Reducing the discount rate can influence the economy by:
O A. giving banks an incentive to hold on to large reserves.
B. preventing investors from selling their treasury securities.
C. encouraging businesses to borrow money from banks.
O D. greatly increasing the inflation rate across the economy.