Discount Lending by the Fed

question 15

Multiple Choice

Discount lending by the Fed:

• A)Is the key component of monetary policy
• B)Is more important today than in years past
• C)Is not as important today as it was in the past
• D)Amounts to five billion dollars in volume during an average week

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Definitions:

Level Material Use

The use of frequent, high-quality, small lot sizes that contribute to just-in-time production.

Large Batches

A method in manufacturing and processing where products are produced or processed in large quantities at once, aiming to achieve economies of scale.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.