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The discount rate is the interest rate




The discount rate is the interest rate charged by;a) banks for mortgage loans;b) banks to other banks;c) banks to their best customers;d) the Fed to its member banks;If the required reserve ratio was 0.10 and the Fed bought $500,000 of Treasury Bills, we would expect the money supply to;a) fall by $5,000,000;b) rise by $50,000;c) rise by $5,000,000;d) fall by $50,000;If the Fed wanted to decrease the money supply it could;a) lower the discount rate;b) lend to its member banks;c) buy Treasury Bills;d) raise the required reserve ratio;e) lower the federal funds rate


Paper#25717 | Written in 18-Jul-2015

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