Which of the following federal actions is aimed at reducing the money supply in markets?

Question

Quizplus · Accepted Answer

A)Discount rate is the interest rate that member banks pay when they borrow funds from the Fed. Raising the discount rate discourages loans and therefore, tightens the money supply.
B)Discount rate is the interest rate that member banks pay when they borrow funds from the Fed. Raising the discount rate discourages loans and therefore, tightens the money supply.
C)Discount rate is the interest rate that member banks pay when they borrow funds from the Fed. Raising the discount rate discourages loans and therefore, tightens the money supply.
D)Discount rate is the interest rate that member banks pay when they borrow funds from the Fed. Raising the discount rate discourages loans and therefore, tightens the money supply.
E)Discount rate is the interest rate that member banks pay when they borrow funds from the Fed. Raising the discount rate discourages loans and therefore, tightens the money supply.

Which of the Following Federal Actions Is Aimed at Reducing