When the Fed Lowers the Discount Rate, It Makes It

question 56

Multiple Choice

When the Fed lowers the discount rate, it makes it

• A) cheaper for banks to borrow from each other.
• B) cheaper for banks to obtain additional reserves by borrowing from the Fed.
• C) more difficult for banks to accept deposits.
• D) more difficult for banks to extend loans.

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Definitions:

Meningitis

An inflammation of the membranes (meninges) surrounding the brain and spinal cord, usually caused by an infection.

Prenatal Screening

The testing of unborn babies for the detection of certain diseases or conditions before birth.

Chromosomal Abnormalities

Variations in the number or structure of chromosomes that can lead to birth defects, developmental delays, or genetic disorders.

Amniocentesis

A procedure for prenatal screening for chromosomal abnormalities conducted between the eleventh and eighteenth weeks of pregnancy. With the assistance of ultrasound, a needle is inserted into the amniotic sac via the abdomen and a small amount of amniotic fluid withdrawn. Cells contained in the fluid are then cultured in the lab.