Multiple Choice
The discount rate is kept ________ the federal funds rate because the Fed prefers that ________.
A) below;banks borrow reserves from each other
B) below;banks borrow reserves from the Fed
C) above;banks borrow reserves from each other
D) above;banks borrow reserves from the Fed
Correct Answer:
Verified
Correct Answer:
Verified
Q8: The Fed's discount lending is of three
Q9: The quantity of reserves supplied equals<br>A)nonborrowed reserves
Q10: Suppose on any given day there is
Q11: The equivalent to the Federal Reserve's discount
Q12: Everything else held constant,in the market for
Q14: The policy tool of changing reserve requirements
Q15: The interest rate on seasonal credit equals<br>A)the
Q16: Which of the following statements about the
Q17: Everything else held constant,in the market for
Q18: When good weather speeds the check-clearing process,float