Everything Else Held Constant,in the Market for Reserves,when the Demand

question 19

Multiple Choice

Everything else held constant,in the market for reserves,when the demand for federal funds intersects the reserve supply curve on the vertical section,increasing the discount rate

• A)increases the federal funds rate.
• B)lowers the federal funds rate.
• C)has no effect on the federal funds rate.
• D)has an indeterminate effect on the federal funds rate.

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Definitions:

Revenue Account

An account that records sales, services, or other income earned by a business.

Asset Account

Accounts on a balance sheet that represent the resources owned by a company, which are expected to provide future economic benefits.

Liabilities

Financial obligations of a business, including debts and other amounts owed to creditors.

Accounts Receivable

An asset account on the balance sheet that represents money owed to a company by customers for goods or services that have been delivered or used but not yet paid for.