If the federal funds rate falls below the discount rate,banks will decrease their borrowings from __________ and __________ their borrowings from __________.It follows that when one bank borrows from __________,reserves in the banking system __________.
A) other banks; increase; the Fed; another bank; remain unchanged
B) the Fed; decrease; other banks; another bank; remain unchanged
C) other banks; increase; the U.S.Treasury; the Treasury; increase
D) the Fed; increase; other banks; another bank; remain unchanged
E) none of the above
Correct Answer:
Verified
Q123: Refer to Exhibit 13-2.What word (up or
Q124: Refer to Exhibit 13-2.What word (up or
Q125: If the Fed lowers the required reserve
Q126: If the Fed lowers the discount rate
Q127: If the Fed lowers the discount rate
Q129: The Banking Act of 1935 changed the
Q130: If the Fed wants to decrease the
Q131: The president of the Federal Reserve Bank
Q132: Refer to Exhibit 13-2.What word (up or
Q133: The chairman of the Board of Governors
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