Which of the Following Statements Is Most Correct

question 95

Multiple Choice

Which of the following statements is most correct?

• A) Discount loans are initiated by the Federal Reserve.
• B) Discount loans are made when banks need relatively small amounts of cash for the long term.
• C) Discount loans are made when banks need relatively large amounts of cash for the long term.
• D) Discount loans are made when banks need relatively small amounts of cash for the short term.

Analyze the impact of incentives on individual behavior in economic models.

Evaluate the role of government intervention in achieving economic efficiency and equity.

Understand the significance of resource allocation in determining standards of living.

Understand the concept of stress, its causes, and its physical and psychological consequences.

---

Definitions:

Express

To show, manifest, or reveal something through words, gestures, actions, or artistic expression.

Proportion

A portion, fraction, or quantity assessed in relation to its total entity.

Business

An organization or enterprising entity engaged in commercial, industrial, or professional activities.

Consumer Price Index

An index measuring the change in the price level of a basket of consumer goods and services purchased by households.