Which of the Following Is True About an Increase in the Discount

question 134

Multiple Choice

Which of the following is true about an increase in the discount rate?

• A)It reduces the cost of reserves borrowed from the Federal Reserve.
• B)It signals the Federal Reserve's desire to restrain money growth.
• C)It signals the Federal Reserve's desire to support credit creation.
• D)It signals the Federal Reserve's eagerness to lend additional reserves.

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Definitions:

Effective Performance

Achieving desired outcomes or objectives efficiently and effectively with the optimal use of resources.

Chronic Renal Disease

A long-term condition characterized by a gradual loss of kidney function over time.

Calcium Carbonate

A commonly used dietary supplement or antacid that neutralizes stomach acid and is used to treat conditions like heartburn or calcium deficiency.

Phosphorus

A mineral important for the formation of bones and teeth and also plays a crucial role in how the body uses carbohydrates and fats.