Author Question: If there is a recession, the Fed would most likely: a. encourage banks to provide loans by lowering ... (Read 19 times)

karateprodigy

  • Hero Member
  • *****
  • Posts: 550
If there is a recession, the Fed would most likely:
 a. encourage banks to provide loans by lowering the discount rate.
  b. encourage banks to provide loans by raising the discount rate.
  c. restrict bank lending by lowering the discount rate.
  d. restrict bank lending by raising the discount rate.
  e. restrict bank lending by lowering the federal funds rate.

Question 2

When the Fed lowers the discount rate, it makes it:
 a. cheaper for banks to borrow from each other.
  b. cheaper for banks to obtain additional reserves by borrowing from the Fed.
  c. more difficult for banks to accept deposits.
  d. more difficult for banks to extend loans.



Ksanderson1296

  • Sr. Member
  • ****
  • Posts: 339
Answer to Question 1

a

Answer to Question 2

b



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

There can actually be a 25-hour time difference between certain locations in the world. The International Date Line passes between the islands of Samoa and American Samoa. It is not a straight line, but "zig-zags" around various island chains. Therefore, Samoa and nearby islands have one date, while American Samoa and nearby islands are one day behind. Daylight saving time is used in some islands, but not in others—further shifting the hours out of sync with natural time.

Did you know?

For about 100 years, scientists thought that peptic ulcers were caused by stress, spicy food, and alcohol. Later, researchers added stomach acid to the list of causes and began treating ulcers with antacids. Now it is known that peptic ulcers are predominantly caused by Helicobacter pylori, a spiral-shaped bacterium that normally exist in the stomach.

Did you know?

Barbituric acid, the base material of barbiturates, was first synthesized in 1863 by Adolph von Bayer. His company later went on to synthesize aspirin for the first time, and Bayer aspirin is still a popular brand today.

Did you know?

People with high total cholesterol have about two times the risk for heart disease as people with ideal levels.

Did you know?

There are more bacteria in your mouth than there are people in the world.

For a complete list of videos, visit our video library