Which of the Following Is True About an Increase in the Discount

question 134

Multiple Choice

Which of the following is true about an increase in the discount rate?

• A)It reduces the cost of reserves borrowed from the Federal Reserve.
• B)It signals the Federal Reserve's desire to restrain money growth.
• C)It signals the Federal Reserve's desire to support credit creation.
• D)It signals the Federal Reserve's eagerness to lend additional reserves.

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Definitions:

Unicellular

Describes organisms made up of a single cell, which performs all necessary functions for life, such as bacteria and some algae.

Stramenopiles

A diverse group of eukaryotic organisms, including diatoms and brown algae, characterized by fine, hair-like structures on their flagella.

Biflagellate

Having two flagella, which are long, slender projections that provide locomotion to various cells and single-celled organisms.

Nanoplankton

Extremely minute (<10 μm in length) algae that are major producers in the ocean because of their great abundance; part of phytoplankton.