The _____ Rate Is the Interest Rate That Banks Pay

question 96

Multiple Choice

The _____ rate is the interest rate that banks pay to borrow from the Federal Reserve, and the _____ rate is the interest rate that banks pay to borrow another bank's excess reserves.

• A) discount; federal funds
• B) federal funds; discount
• C) open market; federal funds
• D) discount; open market

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Definitions:

Industrial Policy

Government strategies aimed at improving the competitive position and capabilities of domestic industries and firms.

Taxes, Subsidies, and Regulations

These are tools used by governments to influence economic activity. Taxes are levies on income or purchases, subsidies provide financial support, and regulations set rules for how businesses can operate.

Specific Industries

Specific Industries are distinct sectors of the economy that produce or handle similar types of goods and services, such as the automotive or technology industries.

Displaced Workers

Individuals who have been laid off from their jobs because their positions have been eliminated, usually due to economic changes, technological advancements, or business restructuring.