The Discount Rate Is

question 52

Multiple Choice

The discount rate is

• A)equal to the nominal interest rate minus the inflation rate.
• B)the interest rate that commercial banks have to pay for any reserves that they borrow from the non-bank public.
• C)the interest rate that commercial banks receive for the reserves that they have on reserve at the Fed.
• D)the interest rate that commercial banks have to pay to the owners of bank deposits.
• E)the interest rate that commercial banks pay for reserves that they borrow from the Fed.

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Definitions:

Chemical Messengers

Compounds such as hormones and neurotransmitters that transmit signals from one cell or organism to another, affecting physiological activities.

Hormones

Chemical messengers produced by endocrine glands that regulate various bodily functions and processes.

Sympathetic Nervous System

A part of the autonomic nervous system that prepares the body for action by accelerating the heart rate, constricting blood vessels, and raising blood pressure.

State of Arousal

A condition of heightened physiological and psychological activity, including alertness and physical preparedness.