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:

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