Lowering the discount rate will
A) decrease reserves,encourage banks to make fewer loans,and decrease the money supply.
B) decrease reserves,encourage banks to make fewer loans,and increase the money supply.
C) increase reserves,encourage banks to make more loans,and increase the money supply.
D) increase reserves,encourage banks to make more loans,and decrease the money supply.
Correct Answer:
Verified
Q200: A central bank can help stop a
Q201: Which of the following describes the degree
Q202: If the Fed buys U.S.Treasury securities,then this
A)increases
Q203: Open market operations refer to the buying
Q204: The discount rate is
A)the interest rate banks
Q206: Bank panics have largely disappeared in the
Q207: To decrease the money supply,the Federal Reserve
Q208: Which of the following is an appropriate
Q209: If the Federal Open Market Committee wants
Q210: In 1913,Congress established the Federal Reserve system
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