When the Federal Reserve Calls in a Discount Loan from a Bank,the

question 19

Multiple Choice

When the Federal Reserve calls in a discount loan from a bank,the monetary base ________ and reserves ________.

• A)remains unchanged;decrease
• B)remains unchanged;increase
• C)decreases;decrease
• D)decreases;remains unchanged

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Definitions:

Dividend Payments

Distributions of earnings allocated by a company to its shareholders, often in the form of cash or stock.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenue, indicating the company's overall profitability.

Statement of Cash Flows

A financial report that shows the cash generated and used by a company during a specific period, classified into operating, investing, and financing activities.

Operating Activities

Activities that are directly related to the primary operations of a company, such as manufacturing, distributing, marketing, and selling a product or service.