Primary Credit Is Only a Backup Source of Funds for Healthy

question 53

Multiple Choice

Primary credit is only a backup source of funds for healthy banks since

• A) the primary credit rate is set above the federal funds rate.
• B) restrictions as to its use limit its benefits.
• C) the secondary credit rate pays 0.5% more.
• D) banks must seek funds from other sources prior to requesting a discount loan.

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Definitions:

Salaries

Regular payments made to employees for their work or services, typically expressed on an annual basis.

Variance

A measure of the dispersion of a set of data points around their mean value, calculated as the average of the squared differences from the mean.

Population

The entire group of individuals or instances about whom the research is concerned or from which the data is collected.

Mean

The average of a set of numbers, calculated by dividing the sum of all values by the quantity of values.