When the Spread Between the T-Bill Rate and the Discount

question 43

Multiple Choice

When the spread between the T-bill rate and the discount rate increases

• A)the Fed must be attempting to expand the money supply.
• B)the Fed must be attempting to contract the money supply.
• C)the volume of discount lending rises.
• D)the volume of discount lending falls.

---

Definitions:

Physiological Measurement

The process of recording biological activities, such as heart rate or brain activity, often used in psychological research to assess responses.

Lie-Detector Test

A technique that attempts to determine if someone is lying by measuring physiological responses, such as blood pressure, pulse, and skin conductivity.

Genetics

The branch of biology that studies genes, heredity, and genetic variation in living organisms.

Environment

The surrounding conditions and influences affecting the growth and development of living organisms, including natural, social, and built factors.