The discount rate is the opportunity cost of holding reserves for a bank.
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Q10: The Federal Reserve cannot consistently keep the
Q11: If the demand for reserves intersects the
Q12: An open market sale of bonds shifts
Q13: On the graph of supply and demand
Q14: On the graph of supply and demand
Q16: National banks must take overnight loans from
Q17: Lowering the discount rate always lowers the
Q18: The supply of reserves is horizontal at
Q19: If there is a positive quantity of
Q20: Raising the discount rate raises the equilibrium
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