When the Fed Lowers the Discount Rate, It Makes It

question 56

Multiple Choice

When the Fed lowers the discount rate, it makes it

• A) cheaper for banks to borrow from each other.
• B) cheaper for banks to obtain additional reserves by borrowing from the Fed.
• C) more difficult for banks to accept deposits.
• D) more difficult for banks to extend loans.

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Definitions:

Blastocyst

An early stage of embryonic development in mammals characterized by a fluid-filled cavity and distinct cell layers, preceding implantation in the uterus.

Embryo

An early stage of development in multicellular organisms following fertilization, before fetal development begins.

Oocyte

A female gametocyte or germ cell involved in reproduction; in humans, an oocyte is an immature egg cell.

Viable

Capable of surviving or living successfully, especially with reference to living organisms or concepts that can be practically implemented.