How Can the Fed Reduce the Implicit Tax on Banks

question 108

Multiple Choice

How can the Fed reduce the implicit tax on banks resulting from reserve requirements?

• A) lowering the discount rate
• B) paying interest on reserves
• C) reducing the federal funds rate
• D) increasing the federal funds rate

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Unrealized Loss

A financial loss that has occurred on paper due to the current market value being lower than the asset's purchase price, but has not yet been realized through sale.

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Discontinued Operations

Parts of a company's core business or subsidiaries that have been disposed of or ceased permanently.

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