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

question 71

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.

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Additional Cost

Expenses that are not initially planned or expected but arise during the course of a project or business operation.

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