If the Fed increases the discount rate, then Key Bank will increase its reserves. decrease its...

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If the Fed increases the discount rate, then Key Bank will increase its reserves. decrease its reserves. make more loans.

Which of the following statements is correct? Central Bank intervention is undertaken to moderate private investment behavior

business economics

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Answer 1

Answer #1

(1) (B)

Higher discount rate by central bank will decrease the reserves of commercial banks.

(2) (C)

Central bank influences inflation, unemployment and economic growth by setting monetary policy.

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Answer 2

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