Multiple Choice
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.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q51: Does the Federal Reserve operate like an
Q52: A reserve requirement of 5 percent implies
Q53: Which of the following would cause the
Q54: Regional Bank is subject to a 10
Q55: When a banker accepts a deposit of
Q57: Marquis decides to bank with First National
Q58: Why did the monetary base increase rapidly
Q59: In order for barter trades to occur,
Q60: A bank finds itself short of required
Q61: Which of the following tends to reduce