Other Things Constant, If the Fed Decreased the Discount Rate

question 48

Multiple Choice

Other things constant, if the Fed decreased the discount rate,

• A) the earnings of the Fed would increase.
• B) the incentive of commercial banks to borrow from the Fed would be reduced.
• C) the prime interest rate would automatically decline.
• D) commercial banks probably would reduce their excess reserves and be more willing to extend additional loans.

---

Definitions:

Animus

In Jungian psychology, the masculine part of a woman's personality or the unconscious masculine side of the female.

Inferiority

A feeling of being less important, skilled, or worthwhile compared to others, often leading to lower self-esteem.

Collective Unconscious

A term coined by Carl Jung that refers to the part of the unconscious mind which is derived from ancestral memory and experience shared by all humanity.

Animus

In Jungian psychology, the animus is the unconscious masculine side of a woman.