Which of the following is true about an increase in the discount rate?
A) It reduces the cost of reserves borrowed from the Federal Reserve.
B) It signals the Federal Reserve's desire to restrain money growth.
C) It signals the Federal Reserve's desire to support credit creation.
D) It signals the Federal Reserve's eagerness to lend additional reserves.
Correct Answer:
Verified
Q51: If excess reserves are too large,a bank
Q52: All of the following are true if
Q53: Discounting refers to the Fed's practice of
A)Selling
Q54: Which of the following is the principal
Q55: Suppose all of the banks in the
Q57: A reduction in the discount rate
A)Signals the
Q58: If banks do not have enough reserves
Q59: By raising and lowering the discount rate,the
Q60: Changing the reserve requirement is
A)A powerful tool
Q61: The choice of how and where to
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