The next question is based on this table.
-In December 1991,the Fed cut the discount rate by a full percentage point to 3.5 percent,the lowest discount rate in 27 years.This move clearly reflects the Fed's
A) concern that inflation was getting out of control.
B) desire to reduce bank reserves.
C) effort to eliminate the large government budget deficit.
D) need to borrow more money from abroad.
E) attempt to send a clear signal to the banking system that it was time to expand credit.
Correct Answer:
Verified
Q42: Over the 2001-03 period,the Fed steadily reduced
Q43: Which of the following policy tools will
Q44: The interest rate charged by the Fed
Q45: The power to decide on the amount
Q46: If this same bank has its legal
Q48: The next question is based on this
Q49: If commercial banks have no excess reserves
Q50: If a commercial bank has $8 million
Q51: An important characteristic of the discount rate
Q52: The table below shows the net effect
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