In the Early Days of the Fed, the Discount Rate

question 11

Multiple Choice

In the early days of the Fed, the discount rate, the rate at which the regional Federal Reserve banks would lend to commercial banks, was determined by the

• A)regional Federal Reserve banks.
• B)board of governors.
• C)secretary of the treasury.
• D)Federal Reserve bank of New York.

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Definitions:

Net Income

is the amount of money that remains after all expenses, taxes, and costs have been subtracted from a company's total revenue, also known as the bottom line.

Full Capacity Sales

The maximum potential sales revenue a firm can achieve when operating at total capacity.

External Financing Needed

The amount of funding a company needs to raise from outside sources to finance its business operations or growth plans.

Long-Term Debt

Borrowings that are due to be repaid more than one year from the date of the financial statement.