Lowering the Discount Rate Is a Way to Expand the Money

question 146

Multiple Choice

Lowering the discount rate is a way to expand the money supply because

• A)it encourages banks to borrow from the Fed so they can more easily accommodate their customers' needs for loans
• B)it encourages business customers to borrow directly from the Fed
• C)a lower discount rate reduces the amount of reserves banks are required to keep
• D)a lower discount rate automatically reduces excess reserves
• E)it encourages banks to sell U.S.government securities and increase their cash reserves

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Definitions:

Health Behavior

encompasses the actions individuals take that affect their health, including habits related to diet, exercise, and substance use.

Health Prevention

A strategy aimed at preventing health problems before they occur, focusing on risk reduction and early intervention.

Prevention Types

Various strategies or measures taken to prevent or reduce the risk of problems, diseases, or injuries before they occur.

Health Belief Model

An intellectual construct that elucidates and anticipates behaviors related to health by examining individuals' attitudes and beliefs.