Multiple Choice
The demand for federal funds is
A) downsloping because higher interest rates discourage commercial banks from borrowing federal funds,but lower rates will encourage borrowing.
B) downsloping because higher interest rates encourage commercial banks to borrow federal funds.
C) upsloping because higher interest rates encourage commercial banks to lend federal funds.
D) upsloping because higher interest rates discourage commercial banks from lending federal funds.
Correct Answer:
Verified
Correct Answer:
Verified
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