The Discount Rate Is the Rate of Interest Charged by the Feds

question 9

Multiple Choice

The discount rate is the rate of interest charged by the feds on loans to banks.It is used as a tool by the feds to:

• A)Control the money supply
• B)Encourage people to spend money
• C)Make it more costly to borrow
• D)Stimulate or cool off the economy

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Definitions:

Assert

To assert a fact or conviction with confidence and vigor.

Disjunctive Syllogisms

A form of logical argument where, from two propositions, each of which could be true or false, a definite conclusion is drawn.

Suspects

Individuals thought to be involved in or responsible for a criminal activity but not yet proven guilty.

Culprit

The person or thing responsible for a fault or problem.