The Rate of Interest Banks Charge Each Other for Lending

question 31

Multiple Choice

The rate of interest banks charge each other for lending reserves is the:

• A) Federal funds rate.
• B) Discount rate.
• C) Money multiplier.
• D) Excess reserve rate.

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Definitions:

Pepsinogen

Proenzyme formed and secreted by the chief cells of the gastric mucosa; the acidity of the gastric juice and pepsin itself converts pepsinogen into pepsin.

Zymogen Granules

Intracellular storage granules found in the pancreas and other glands, containing inactive enzyme precursors that can be activated when needed.

Salivary Amylase

An enzyme found in saliva that starts the process of breaking down starches into sugars during digestion.

Pyloric Pump

A mechanism involving the pylorus, the region of the stomach that connects to the small intestine, which regulates the passage of digestive contents into the intestine.