If the Discount Rate Is Lowered,banks Choose to Borrow

question 250

Multiple Choice

If the discount rate is lowered,banks choose to borrow

• A) less from the Fed so reserves increase.
• B) less from the Fed so reserves decrease.
• C) more from the Fed so reserves increase.
• D) more from the Fed so reserves decrease.

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Definitions:

Frustration

An emotional state that occurs when a person is blocked from achieving a goal, leading to feelings of stress, anger, or irritability.

Avoidance Behavior

Actions taken to escape from or to evade situations, activities, or stimuli that are perceived as uncomfortable or leading to an undesired outcome.

Approach Behavior

Actions directed towards attaining a positive stimulus or outcome, often driven by motivational states.

Cathexis

The investment of emotional significance in an activity, object, or idea.