If funds are being loaned from one commercial bank's excess reserves on deposit with the Federal Reserve to another commercial bank's deposit account at the Fed, the transaction is taking place in:
a. the discount market.
b. the currency exchange market.
c. the federal funds market.
d. the open market.
e. the reserves market
Question 2
The imposition of a binding price ceiling on a market often results in:
a. an increase in investment in the industry.
b. a surplus.
c. a shortage.
d. a decrease in discrimination on the part of sellers.
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