The Amount of Borrowed Reserves Is ________ Related to the Discount

question 59

Multiple Choice

The amount of borrowed reserves is ________ related to the discount rate,and is ________ related to the market interest rate.

• A)negatively;negatively
• B)negatively;positively
• C)positively;negatively
• D)positively;positively

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Definitions:

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs, representing excess revenue over the opportunity cost of resources employed.

Competitive Equilibrium

A state in a market where supply equals demand, leading to an optimal distribution of goods and services among participants.

Constant-cost Industries

Industries where the costs of production do not change significantly with an increase or decrease in the quantity produced.

Economic Efficiency

A condition where resources are allocated in a way that maximizes the production of goods and services, and minimizes waste and inefficiency.