Which of the Following Statements BEST Describes Why an Increase

question 76

Multiple Choice

Which of the following statements BEST describes why an increase in the discount rate often results in a decrease in the money supply?

• A) An increase in the discount rate will lower the overall values of loans from the Federal Reserve Banks to individual banks.
• B) An increase in the discount rate will lower the overall values of loans from individual banks to other financial institutions.
• C) An increase in the discount rate will lower the overall number of banks issuing loans to individuals.
• D) An increase in the discount rate will lower the overall number of loans from the Federal Reserve Banks to individual banks.
• E) An increase in the discount rate will lower the overall number of loans from the Federal Reserve Banks to individuals.

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Definitions:

Flange

A flat rim, collar, or rib, typically projecting for strength or attachment to another object, as at the end of a pipe, steam cylinder, etc.

Gusset

A triangular piece of metal used to reinforce or strengthen a joint in structures or in components like bicycle frames.

Tempered Frame Rails

Tempered Frame Rails are treated through tempering, a heat treatment process to increase the toughness of steel used in the frame rails of vehicles, enhancing strength and durability.

Extend Frame

The process or modification of increasing the length of a vehicle's frame or chassis for additional capacity or functionality.