If the Fed makes a discount loan of 2 million to a commercial ...

[neverstopbelieb]

If the Fed makes a discount loan of 2 million to a commercial bank, the Fed's balance sheet will show
 
  A) an increase in discount loans of 2 million and an increase in bank reserves of 2 million.
  B) an increase in discount loans of 2 million and a decrease in bank reserves of 2 million.
  C) a decrease in discount loans of 2 million and an increase in bank reserves of 2 million.
  D) a decrease in discount loans of 2 million and a decrease in bank reserves of 2 million.

Question 2

The price at which an option may be exercised is called the
 
  A) market price.
  B) equilibrium price.
  C) strike price.
  D) fixed price.

[rnehls]

Answer to Question 1

A

Answer to Question 2

C

[neverstopbelieb]

Thanks for the timely response, appreciate it

[diana chang]

Gracias!