Author Question: Although the Federal Reserve had traditionally made discount loans only to ________, in response to ... (Read 66 times)

abc · **on:** Jun 29, 2018

Although the Federal Reserve had traditionally made discount loans only to ________, in response to the financial crisis in 2008 the Fed made primary dealers eligible for discount loans as well.

A) commercial banks B) investment banks
C) government agencies D) mortgage lenders

Question 2

Which of the following is an appropriate policy for a central bank to follow if the economy is plagued with deflation?

A) using contractionary monetary policy to drive up interest rates
B) gradually raising the required reserve rate
C) increasing the target interest rate on overnight loans
D) consistently pursuing policy to promote the credibility of the central bank