This topic contains a solution. Click here to go to the answer

Author Question: When the Fed lowers the discount rate, it: a. lowers the cost of borrowing from the Fed, ... (Read 57 times)

biggirl4568

  • Hero Member
  • *****
  • Posts: 551
When the Fed lowers the discount rate, it:
 a. lowers the cost of borrowing from the Fed, encouraging banks to make loans to the general public.
  b. raises the cost of borrowing from the Fed, discouraging banks from making loans to the general public.
  c. increases the amount of excess reserves that banks hold, encouraging them to make loans to the general public.
  d. increases the amount of excess reserves that banks hold, discouraging them from making loans to the general public.
  e. decreases the amount of excess reserves that banks hold, discouraging them from making loans to the general public.

Question 2

The rate of interest charged by the Federal Reserve to member banks for reserves borrowed from the Fed is known as the:
 a. federal funds rate.
  b. discount rate.
  c. repurchase rate.
  d. Q-ceiling rate.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

shayla

  • Sr. Member
  • ****
  • Posts: 323
Answer to Question 1

a

Answer to Question 2

b




biggirl4568

  • Member
  • Posts: 551
Reply 2 on: Jun 30, 2018
Excellent


ryansturges

  • Member
  • Posts: 338
Reply 3 on: Yesterday
Gracias!

 

Did you know?

In the ancient and medieval periods, dysentery killed about ? of all babies before they reach 12 months of age. The disease was transferred through contaminated drinking water, because there was no way to adequately dispose of sewage, which contaminated the water.

Did you know?

This year, an estimated 1.4 million Americans will have a new or recurrent heart attack.

Did you know?

Stroke kills people from all ethnic backgrounds, but the people at highest risk for fatal strokes are: black men, black women, Asian men, white men, and white women.

Did you know?

Tobacco depletes the body of vitamins A, C, and E, which can result in any of the following: dry hair, dry skin, dry eyes, poor growth, night blindness, abscesses, insomnia, fatigue, reproductive system problems, sinusitis, pneumonia, frequent respiratory problems, skin disorders, weight loss, rickets, osteomalacia, nervousness, muscle spasms, leg cramps, extremity numbness, bone malformations, decayed teeth, difficulty in walking, irritability, restlessness, profuse sweating, increased uric acid (gout), joint damage, damaged red blood cells, destruction of nerves, infertility, miscarriage, and many types of cancer.

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

For a complete list of videos, visit our video library