The Fact That, for Most of Its History, the Fed

question 79

Multiple Choice

The fact that, for most of its history, the Fed was reluctant to make discount loans actually:

• A)At times was a destabilizing force for financial markets
• B)Proved to be a very stabilizing force for financial markets
• C)Pushed the discount rate above the target federal funds rate
• D)Resulted in banks in very strong financial shape as being the only ones borrowing from the Fed

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Definitions:

Thalamus

A structure in the brain that acts as a relay station, processing and transmitting sensory and motor signals to and from the cerebral cortex.

Cortex

Outermost covering of the brain consisting of densely packed neurons, responsible for higher thought processes and interpretation of sensory input.

Emotions

Complex psychological states that involve physiological arousal, expressive behaviors, and conscious experience.

Physical Arousal

The condition of being physiologically excited or stimulated, often associated with preparedness for physical activity.