The discount rate
Group of answer choices
a. is the interest rate on loans of reserves from one bank to another
b. is the main target of policy used by the Fed
c. is the main tool of policy used by the Fed
d. is not often changed for monetary policy
The discount rate is the interest rate on loans of federal reserves from one bank to another bank
Therefore correct answer is a.
The discount rate Group of answer choices a. is the interest rate on loans of reserves...
The monetary base consists of Group of answer choices a-the securities the Fed owns plus its reserves. b-the securities the Fed owns plus the discount loans owed to the Fed. c-the securities the Fed owns plus currency in circulation. d-the discount loans owed to the Fed plus its reserves.
1) What is real GDP? Group of answer choices It is the total market value of final goods and services produced in an economy in a given year. It is a sustained increase in the average price level of goods and services. It is the total market value of all final goods and services produced in an economy in a given year, adjusted for inflation. It is an increase in the money supply. 2) The unemployment rate is: Group of...
If the Fed increases the discount rate, then Key Bank will increase its reserves. decrease its reserves. make more loans. A contractionary or tight monetary policy stimulates borrowing. reduces borrowing. lowers interest rates. Which of the following is an inaccurate statement about the banking system? Banks borrow from households in order to lend to investors. Banks are the critical link in the flow of capital from households to investors. Competition between private banks and the central bank is what limits...
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.
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
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...
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
Which of the following is the responsibility of the Fed ? Group of answer choices printing money providing loans to other countries holding bank reserves All of the above are functions the Fed performs
9 In the U.S econormy the money supply is cot A) U.S Treasury. B) Federal Reserve System D) Senate Committee on Banking and Finance. 10. Ceteris paribus, if the Fed raised the required reserve ratio A) Banks could increase their lending B) The Federal funds interest rate would rise. The size of the monetary multiplier would decrease. D) The size of the monetary multiplier would increase. 11. Money is created when A) Loans are made. Checks written on one bank...
QUESTION 22 The interest rate the Fed charges other banks for loans is the ____ rate and the interest rate on over night loans from one bank to another is the _____ rate. federal funds, discount reverse repo; repo discount: federal funds All of the above QUESTION 23 _ is the difference between a firm's assets and its liabilities. Debt capital Equity capital Collateral An initial Public Offering