Everything Else Held Constant,in the Market for Reserves,increases in the Discount

question 89

Multiple Choice

Everything else held constant,in the market for reserves,increases in the discount rate affect the federal funds rate

• A)when the funds rate is below the discount rate.
• B)when the funds rate equals the discount rate.
• C)when the demand for federal funds intersects the vertical section of the reserve supply curve.
• D)when the demand for federal funds equals zero.

---

Definitions:

Gadgets

Small electronic or mechanical devices or tools that are innovative and designed for a particular purpose.

Significant Quantities

Items or entities in considerable amounts that are large enough to warrant attention or impact assessment.

Inventory

Inventory refers to the goods and materials that a business holds for the ultimate goal of resale or processing, including raw materials, work-in-progress, and finished goods.

Manufacturing

The process of converting raw materials or components into finished goods through the use of tools, machinery, and labor.