Ceteris paribus, increases in the discount rate,
A) decrease the cost of borrowing reserves from the Fed.
B) increase the cost of borrowing reserves from the Fed.
C) have no effect on the cost of borrowing, but decrease reserves and money supply.
D) increase the cost of borrowing, increase reserves, and increase money supply.
Correct Answer:
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Q79: Open market operations are executed by the
A)Board
Q80: Open market operations involve
A)the buying and selling
Q81: The relationship between the Fed's buying of
Q82: Changes in bank reserves affect
A)the money supply.
B)credit
Q83: The discount window is
A)a lending facility where
Q84: The discount rate is
A)the interest rate the
Q85: The discount rate
A)used to be changed by
Q87: The main concern for the Lender of
Q88: Required reserves are equal to which of
Q89: Which of the following is true?
A)Most other
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