Jay is an 21 year old college senior. He reads on a financial blog that interest rates are being lowered by the Federal Reserve.

Which of these situations might Jay decide to do based on this information?

Take a loan.

Explanation:

If the fed lowers the interest rates, this means that the loans offered by the commercial banks would have lower rates which can make Jay to decide to take a new loan, for example, to buy a new car, take a credit car or a study loan as the conditions would be better.

Answer: Purchase a new car

Explanation:

I have found that the answer is that Jay is considering to buy a new car but I can't sat the right the right explanation of it. I think that he needs a car because he is going to college and he would need a car soon. He is also having 21 years and he is not considered more as ''Young driver''.