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Author Question: The interest rate banks pay to borrow money from the Fed is the (Read 83 times)

misspop

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Question 1

Assume that all commercial banks are loaned up. Total deposits in the banking system are $200 million. The required reserve ratio is increased. The money supply will


◦ decrease.
◦ increase.
◦ not change because there was no change in deposits.
◦ not change because the required reserve ratio has no impact on money supply.

Question 2

The interest rate banks pay to borrow money from the Fed is the


◦ federal funds rate.
◦ discount rate.
◦ prime lending rate.
◦ reserve rate.


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Marked as best answer by misspop on Apr 19, 2019

Sierray

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misspop

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Reply 2 on: Apr 19, 2019
YES! Correct, THANKS for helping me on my review


tranoy

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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