In the Context of Monetary Policy, Which of the Following

question 39

Multiple Choice

In the context of monetary policy, which of the following statements is true of the discount rate?

• A) The Fed increases it during recessions.
• B) When the Fed reduces it, interest rates on bank loans tend to fall.
• C) When the Fed increases it, banks can obtain funds at a lower cost.
• D) It is the interest rate that the Fed charges on its loans to individuals.

---

Definitions:

Extrinsic Muscles

Muscles that originate outside of the body part they act upon, often providing gross motor function.

Lateral Rectus

A muscle located in the eye that functions to rotate the eyeball away from the body's central line.

Inferior Obliques

Muscles located beneath the eyes that help control eye movement, particularly elevating the eye when looking inward or outward.

Flexor Digiti Minimi Brevis

A muscle in the hand responsible for flexing the little finger.