If an increased discount rate remains below other money market interest rates, the cost effect will cause:
A) Other interest rates to increase
B) Borrowing from the discount window to remain relatively unchanged
C) Borrowing from other sources to become more attractive
D) Market participants to curtail spending plans
E) All of the above

Question

Quizplus · Accepted Answer

The Answer of If an increased discount rate remains below other money market interest rates, the cost effect will cause:
A) Other interest rates to increase
B) Borrowing from the discount window to remain relatively unchanged
C) Borrowing from other sources to become more attractive
D) Market participants to curtail spending plans
E) All of the above

If an Increased Discount Rate Remains Below Other Money Market