Which of the Following Would Substitute for Discount Loans

question 51

Multiple Choice

Which of the following would substitute for discount loans?

• A) Loans to businesses
• B) Repurchase agreements
• C) Investing in Eurodollars
• D) Loans to bank holding companies
• E) Reverse repurchase agreements

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Definitions:

Mass Investor Withdrawal

A situation where a large number of investors simultaneously withdraw their investments from a particular asset or market.

Run

A term that can describe a sustained period of demand for a product or currency, or a rapid sell-off in securities trading.

Supply and Demand

are economic principles stating that the price of a good or service is determined by its availability (supply) and the desire of buyers (demand).

Borrowed and Lent

Refers to the process of obtaining funds (borrowed) from a lender under an agreement to pay back the funds plus interest (lent) over time.