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am Il-Chapters 14,16,+ PP (07/30) Saved Help Save & EX 13 Lowering the Reserve Requirement (the denominator) from the current
20 When the Federal Reserve Bank gives an emergency loan from its Discount Window to help a any bank that is in se trouble, w
What tool listed below can the Fed use to lend money to a foreign brokerage house? Multiple Choice О The Fed can use a Revers
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Answer #1

13. True

Lowering the reserve requirement would increase the money multiplier, which means more money in circulation, and hence, higher chances of inflation.

14. Discount rate

When the Fed lends money to the commercial banks, the rate of interest charged is the discount rate.

15. Repo Agreement

Fed can use the same REPO aggrement that it uses for domestic borrowers.

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