The Most Common Type of Discount Lending That the Fed

question 116

Multiple Choice

The most common type of discount lending that the Fed extends to banks is called

• A)seasonal credit.
• B)secondary credit.
• C)primary credit.
• D)installment credit.

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Definitions:

Diminishing Returns

The principle stating that if one factor of production is increased while others remain constant, the overall returns will eventually decrease after a certain point.

Marginal Cost Curve

A graphical representation showing how the cost of producing one additional unit of a good changes as the production volume varies.

Total Product

The overall quantity of output that a firm produces, typically measured within a specific time period under given levels of input.

Marginal Cost

The additional cost incurred in the production of one more unit of a good or service.