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    Financial Markets and Institutions Study Set 1
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    Exam 10: Conduct of Monetary Policy: Tools, Goals, Strategy, and Tactics
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    A Discount Loan by the Fed to a Bank Causes
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A Discount Loan by the Fed to a Bank Causes

Question 54

Question 54

Multiple Choice

A discount loan by the Fed to a bank causes a(n) ________ in reserves in the banking system and a(n) ________ in the monetary base.


A) increase; decrease
B) decrease; decrease
C) decrease; increase
D) increase; increase

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