If There Is No Discount Lending, the Fed Must Change

question 45

Multiple Choice

If there is no discount lending, the Fed must change the _____ to change the equilibrium federal funds rate.

• A) discount rate
• B) reserve requirement
• C) both of the above
• D) neither of the above

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Definitions:

Prediction

The act of forecasting or estimating future events based on current or past data.

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Individuals who study the human mind and behavior through various scientific methods and experiments.

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A fundamental truth, foundation, or doctrine that serves as the basis for a system of belief or behavior or for a chain of reasoning.

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