A Decrease in the Discount Rate

question 14

Multiple Choice

A decrease in the discount rate

• A) reduces the cost of borrowing from the Fed.
• B) signals the Fed's desire to decrease the money supply.
• C) signals the Fed's desire to reduce lending to commercial banks.
• D) increases the cost of reserves borrowed from the Fed.

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Definitions:

Income Gap

A gap in income between one group and another, such as discrepancies in income between older and younger employees performing that same job.

Systemic Ageism

Discrimination or prejudice against individuals based on age, entrenched and normalized within societal systems and institutions.

Ephebophobic

Having an irrational fear of youths or a dislike of young people.

Ageism

Discrimination or prejudice against individuals based on their age, particularly among the elderly.