Which one of the following statements is true?
A) The federal funds rate is the rate the Fed charges member banks when they borrow reserves.
B) The federal funds rate cannot be changed without an act of Congress.
C) Traditionally, the Fed has kept the discount rate above the federal funds rate.
D) Traditionally, the Fed has kept the discount rate below the federal funds rate.
Correct Answer:
Verified
Q2: The tool of monetary policy that is
Q3: If the prevailing rate of interest in
Q4: Which of the following tools does the
Q5: Increases in the discount rate
A) encourage banks
Q6: How is the effect of a contractionary
Q7: When the Fed implements an expansionary monetary
Q8: The goal of expansionary monetary policy is
A)
Q9: The goal of contractionary monetary policy is
A)
Q10: If the Fed increases the reserve requirement,
A)
Q11: If the Fed decreases the reserve requirement,
A)
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