An Increase in the Discount Rate Will Result In

question 14

Multiple Choice

An increase in the discount rate will result in:

• A)increase in bank reserves and a decrease in the federal funds rate.
• B)increase in bank reserves and an increase in the federal funds rate.
• C)decrease in bank reserves and a decrease in the federal funds rate.
• D)decrease in bank reserves and an increase in the federal funds rate.

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Definitions:

Morale

The feelings of enthusiasm and loyalty that a person or group has about a task or job.

Dual-income Families

Households in which both partners work and contribute financially, often to meet the family's higher living expenses or to achieve financial goals.

Commuter Marriage

A marital arrangement where spouses live apart, typically due to work obligations, and commute to spend time together.

Paycheck

A document issued by an employer to an employee to pay for services rendered, typically reflecting the amount earned minus taxes and other deductions.