The _____ rate is the interest rate that banks pay to borrow from the Federal Reserve, and the _____ rate is the interest rate that banks pay to borrow another bank's excess reserves.
A) discount; federal funds
B) federal funds; discount
C) open market; federal funds
D) discount; open market
Correct Answer:
Verified
Q10: Which of the following is NOT an
Q11: When interest rates are high due to
Q12: According to economists, short-term interest rates apply
Q13: The Federal Reserve has more impact on
Q14: The interest rate that a bank pays
Q16: When the Federal Reserve sets an interest
Q17: Demand for which of the following is
Q18: In the market for money, the _
Q19: (Figure: Money Supply and Demand) The money
Q20: (Figure: Decrease in Money Supply) The figure
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