If the Discount Rate Is Lowered,banks Borrow

question 40

Multiple Choice

If the discount rate is lowered,banks 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:

Mean

A measure of central tendency, calculated by adding all the values in a dataset and dividing by the number of values.

Continuous Probability Distributions

Mathematical functions that assign probabilities to every possible value of a continuous random variable.

Location Parameter

A parameter in probability distributions that determines the location or central tendency of the distribution.

Scale Parameter

A parameter in statistical or mathematical models that measures the scale or level of concentration of a distribution or data set.