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The Bank of Bramblewood Would Like to Increase Its Loans

Question 324

Multiple Choice

The Bank of Bramblewood would like to increase its loans to customers,but it is currently mandated by a high reserve rate.As a Federal Reserve member bank,it will borrow additional funds from the Fed and charge its customers an interest rate that is higher than the ________________.


A) reserve rate
B) federal funds rate
C) discount rate
D) prime rate

Correct Answer:

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