Solved

If the Fed Increases the Discount Rate,commercial Banks Pay a ________

Question 142

Multiple Choice

If the Fed increases the discount rate,commercial banks pay a ________ interest rate if they borrow money from the Fed and will therefore ________.


A) higher;borrow less money from the Fed and make fewer loans to consumers
B) higher;borrow more money from the Fed and make more loans to consumers
C) lower;borrow more money from the Fed and make more loans to consumers
D) lower;borrow less money from the Fed and make fewer loans to consumers
E) higher;deposit more money into their reserves at the Fed

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents