A rise in market interest rates
A) encourages banks to take out discount loans, but discourages their holding excess reserves.
B) discourages banks from taking out discount loans, but encourages their holding excess reserves.
C) encourages banks to take out discount loans and to hold excess reserves.
D) discourages banks from taking out discount loans and from holding excess reserves.
Correct Answer:
Verified
Q62: The size of the money multiplier depends
Q63: Required reserves are equal to
A)the required reserve
Q64: Which of the following equations is correct?
A)B
Q65: A good reason for suspecting the existence
Q66: Which of the following statements about the
Q68: The anonymity premium refers to
A)the value placed
Q69: If currency outstanding equals $500 million, checkable
Q70: The money multiplier
A)equals 1 over the required
Q71: If banks hold no excess reserves, checkable
Q72: Which of the following equations is correct?
A)M
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