On the graph of supply and demand for reserves, if the equilibrium federal funds rate is below the discount rate, there is no discount lending.
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Q8: If the equilibrium federal funds rate equals
Q9: A change in the discount rate shifts
Q10: The Federal Reserve cannot consistently keep the
Q11: If the demand for reserves intersects the
Q12: An open market sale of bonds shifts
Q14: On the graph of supply and demand
Q15: The discount rate is the opportunity cost
Q16: National banks must take overnight loans from
Q17: Lowering the discount rate always lowers the
Q18: The supply of reserves is horizontal at
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