When a bank repays a discount loan to the Fed,there is a(n)________ in reserves in the banking system and a(n)________ in the monetary base.

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When a bank repays a discount loan to the Fed, there is a decrease in reserves in the banking system because the bank is using its reserves to pay back the loan. This repayment also results in a decrease in the monetary base, as the repayment of loans to the central bank reduces the total amount of reserves in the banking system.

When a Bank Repays a Discount Loan to the Fed,there