Multiple Choice
In practice, the Federal Reserve keeps the discount rate close to the ________ rate in order to avoid large swings in borrowed reserves by banks.
A) inflation
B) six-month Treasury bill
C) federal funds
D) prime
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q61: As the Federal Reserve _ bonds, interest
Q62: What three factors affect the demand for
Q63: To increase the level of output, the
Q64: The supply of money is determined by
Q65: Recall the Application about the possible link
Q67: The federal funds rate is the interest
Q68: If the Fed wished to decrease interest
Q69: How would the Fed's reduction of the
Q70: The outside lags related to monetary policy
Q71: Recall the Application about the effectiveness of