The Fed will make a discount loan to a bank during a crisis: ?
A) no matter what condition the bank is in.?
B) only if the bank is sound financially and can provide collateral for the loan.?
C) but if the bank doesn't have collateral the interest rate is higher.?
D) only if the bank would fail without the loan.
Correct Answer:
Verified
Q16: Reserves currently are so abundant that: ?
A) the federal
Q17: The Fed can _ in the economy. ?
A) change
Q18: The principle tool the Fed uses to
Q19: The focus for most central banks today
Q20: The conventional tools of monetary policy include: ?
A) the
Q22: The types of loans the Fed makes
Q23: Discount lending by the Fed: ?
A) is the key
Q24: The interest on excess reserves is: ?
A) the
Q25: One of the reasons primary credit exists
Q26: An increase in the federal funds rate
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