Ques 22). The Fed does establish a fixed rate, known as the discount rate, which is the interest rate that the Fed will lend to banks through the so-called discount window.
The fed funds rate is the interest rate at which commercial banks lend reserves to one another on an overnight basis.
So option C is correct.
Ques 23). Firm's assets - liabilities = equity capital
So option B is correct.
QUESTION 22 The interest rate the Fed charges other banks for loans is the ____ rate...
The federal funds rate is the interest rate that ____ charges _____ Multiple Choice banks; other banks the Fed, commercial banks banks; their best corporate customers banks; on federal student loans
The discount rate is the interest rate that a. banks charge one another for loans. b. banks charge the Fed for loans. c. the Fed charges banks for loans. d. the Fed charges Congress for loans.
QUESTION 34 The federal funds rate is the interest rate • banks charge each other for loans banks charge for their best customers the Fed charges for loans to banks paid by government bonds QUESTION 35 What function of money serving when you use the money to put in your savings account? A store of value A unit of account A medium of exchange A flow of funds Click Save and submit to save and submit. Chels Save an ansers...
answer all QUESTION 14 The discount rate is the interest rate that O the Fed charges on loans made to the government. O member banks charge on loans made to the Fed. O the government charges on loans made to the Fed. the Fed charges on loans made to member banks. QUESTION 15 The slope of the aggregate demand curve indicates that, as the price level increases, O the aggregate demand curve shifts rightward. O the real GDP demanded decreases....
QUESTION 18 The federal fund rate is the interest rate paid by loans banks take from the Fed. QUESTION 19 The quantitative casing policy shifts the money supply curve to the... left and causes the federal funds interest rate to rise. right and causes the federal funds interest rate to rise. right and causes the federal funds interest rate to fall left and causes the federal funds interest rate to fall. UESTION 20 Save and Submit to save and submi
1. In the federal funds market, _____.? a. ?banks make loans to the Fed b. ?the Fed makes short-term loans to private borrowers c. ?the Fed makes long-term loans to commercial banks d. ?banks make short-term loans to other banks e. ?banks make long-term loans to other banks 2. The table below shows the balance sheet of Countybank. If the required reserve ratio is 10 percent, this bank alone can now increase its lending by _____.? ? Table 14.2 ?...
Incorrect Question 7 0/1 pts If the Federal Reserve charges 2.5% interest rate on loans to financially healthy banks and pays 1.75% interest on reserves held by the banks, the Effective Federal funds rate could possibly be 2.5% 2.25% 1.75% 1.5% 2.75%
The __________ is the rate financial institutions charge each other for overnight loans used as reserves, while the __________ is the rate that the Fed charges depository institutions to borrow reserves from a regional Federal Reserve Bank. federal funds rate / prime rate discount rate / secondary rate federal funds rate / discount rate discount rate / prime rate
Question 2 What is the discount rate? Internationally accepted interest rate by the World Bank b. The interest rate the Fed charges on loans of reserves to banks The interest rate the Fed charges on housing loans None of the above
10. The discount rate and the federal funds rate The discount rate is the interest rate on loans that the Federal Reserve makes to banks. Banks occasionally borrow from the Federal Reserve when they find themselves short on reserves. A lower discount rate banks' incentives to borrow reserves from the Federal Reserve, thereby the quantity of reserves in the banking system and causing the money supply to The federal funds rate is the interest rate that banks charge one another...