Author Question: The Fed can raise the discount rate when it wants to: a. decrease the money supply. b. increase ... (Read 153 times)

soccerdreamer_17 · **on:** Jun 30, 2018

The Fed can raise the discount rate when it wants to:
a. decrease the money supply.
b. increase the money supply.
c. decrease the budget deficit.
d. increase the budget deficit.

Question 2

What interest rate does a bank pay when it borrows reserves from the Fed?
a. The discount rate.
b. The prime rate.
c. The federal funds rate.
d. The required reserve rate.