When the Fed Makes a Discount Loan, the Impact on the Fed's

question 78

Multiple Choice

When the Fed makes a discount loan, the impact on the Fed's balance sheet will reflect:

• A) no change in liabilities but an increase in assets.
• B) a decrease in assets and liabilities.
• C) an increase in assets and liabilities.
• D) an increase in assets and a decrease in liabilities.

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Definitions:

Presynaptic Membrane

Axon terminal membrane on the transmitter, or output, side of a synapse.

Neurotransmission

The process by which neurotransmitters are released by a neuron, cross the synaptic gap, and bind to receptors on another neuron, resulting in the transmission of a nerve impulse.

Axosecretory Synapses

Specialized synapses where an axon terminal secretes neurotransmitters directly into the bloodstream.

Transmitters

Chemical agents released by neurons that cross synapses to carry signals to other neurons or muscles.