The Supply Curve of Reserves Has Two Kinks in It

question 10

Multiple Choice

The supply curve of reserves has two kinks in it: one at the _________________ and the other at the ____________________ rate.

• A) interest rate that the Fed pays on reserves; discount
• B) federal funds rate; discount
• C) discount rate; prime rate
• D) federal funds rate; prime rate

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Definitions:

Household

A social unit consisting of those living together in the same dwelling, typically a family or group of roommates.

Separation Of Church And State

The principle that government institutions and religious institutions should function independently without interference from each other.

Puritans

A group of English Protestants in the 16th and 17th centuries who sought to "purify" the Church of England from its Catholic practices, advocating for simpler forms of worship and governance.

Church Tax

A tax imposed on members of some religious congregations in certain countries, which is collected by the state and handed over to the respective religious organization.