What Can You Infer Was the Intended Effect of California's

question 54

Multiple Choice

What can you infer was the intended effect of California's Proposition 13?

• A) To cut property taxes
• B) To increase all taxes
• C) To legalize gay marriage
• D) To desegregate public schools

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Definitions:

Discount Rate

The discount rate is the interest rate charged to commercial banks and other financial institutions for loans received from the Federal Reserve's discount window.

Prime Rate

The interest rate that commercial banks charge their most credit-worthy customers, frequently used as a benchmark in lending rates.

Commercial Banks

Financial institutions that accept deposits, offer various loans, and provide other financial services to the public.

Open Market Operations

Central bank activities involving the buying or selling of government securities to control the money supply and interest rates.