In Recent Years, the Fed Has Generally Set the Discount

question 67

Multiple Choice

In recent years, the Fed has generally set the discount rate

• A) lower than the federal funds rate to help financially troubled banks get more solvent.
• B) higher than the interest rate on 30-year fixed-rate mortgage loans.
• C) higher than the federal funds rate for most banks.
• D) equal to the rate of inflation.

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Definitions:

Schedule

A plan that designates specific times at which certain tasks or events should occur.

Reinforcers

In psychology, stimuli which, when presented after a behavior, increase the likelihood of that behavior being repeated in the future.

Positive Reinforcements

The introduction of rewarding stimuli following a desired behavior to increase the likelihood of it being repeated.

Punishment

A consequence designed to reduce the occurrence of unwanted behavior by either applying a negative stimulus or removing a positive one.