The Discount Rate Is the Interest Rate That

question 63

Multiple Choice

The discount rate is the interest rate that:

• A)banks charge on large loans.
• B)banks charge on loans to other banks.
• C)the Fed charges on loans to branches of the U.S.government.
• D)the Fed charges on loans to depository institutions.
• E)the Fed charges on loans to the public.

---

Definitions:

Stagflation

An economic condition characterized by slow economic growth, high unemployment, and high inflation.

Eisenhower Administration

The executive leadership period in the United States under President Dwight D. Eisenhower, from 1953 to 1961, noted for moderate domestic policies and significant infrastructure projects.

Reagan Years

The period during which Ronald Reagan served as President of the United States, from 1981 to 1989, noted for economic policies that emphasized tax cuts, deregulation, and controlled government spending.

Medicare and Medicaid

Medicare and Medicaid are U.S. government programs that provide medical and health-related services to specific groups of people, including the elderly, disabled, and individuals with low income.