A Bank Is Less Likely to Borrow from the Fed

question 10

Multiple Choice

A bank is less likely to borrow from the Fed when the __________ falls relative to the __________.

• A) discount rate; required reserve ratio
• B) excess reserve; required reserves
• C) discount rate; federal funds rate
• D) federal funds rate; discount rate

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Definitions:

New Ovens

Recently manufactured or acquired cooking appliances designed for baking, heating, or drying food.

Capital Contribution

It is the amount of money or assets that an investor puts into a company in exchange for part ownership or a stake in the company.

Manages Business

The process of organizing, planning, directing, and controlling the resources and operations of a business to achieve its goals and objectives.

Partnership Agreement

A partnership agreement is a legal document that outlines the rights, responsibilities, and obligations of each partner in a business partnership.