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:
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Q137: The Board of Governors of the Federal
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Q139: The Federal Open Market Committee is
A)the main
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Q141: The required reserve ratio is the
A)amount of
Q143: Which of the following is NOT one
Q144: The discount rate is
A)the interest rate that
Q145: Which of the following are policy tools
Q146: The interest rate the Federal Reserve charges
Q147: If the Fed increases the discount rate,
A)commercial
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