When the Fed Decreases the Discount Rate, Banks Will

question 51

Multiple Choice

When the Fed decreases the discount rate, banks will

• A)borrow more from the Fed and lend more to the public.The money supply increases.
• B)borrow more from the Fed and lend less to the public.The money supply decreases.
• C)borrow less from the Fed and lend more to the public.The money supply increases.
• D)borrow less from the Fed and lend less to the public.The money supply decreases.

---

Definitions:

Manchuria

A historical region in Northeast Asia, rich in resources and strategically important, often contested and occupied by various powers such as China, Russia, and Japan throughout history.

Diplomatic Isolation

A foreign policy strategy where a country or government is purposely excluded from international diplomacy and activities.

Aggressor States

Nations that initiate hostilities or war against other countries without provocation.

Appeasement Policy

A diplomatic strategy of making concessions to an aggressive power in order to avoid conflict, most notoriously associated with British policy toward Nazi Germany in the 1930s.