For Most of the Fed's History, the Fed

question 96

Multiple Choice

For most of the Fed's history, the Fed:

• A)Lent reserves at an interest rate below the target federal funds rate
• B)Found banks would borrow from the Fed far more often than they would borrow in the federal funds market
• C)Was very lenient in making discount loans
• D)Tied the discount rate to the rate on Treasury securities

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