If the Discount Rate Is Lowered,banks Borrow

question 40

Multiple Choice

If the discount rate is lowered,banks borrow

• A)less from the Fed so reserves increase.
• B)less from the Fed so reserves decrease.
• C)more from the Fed so reserves increase.
• D)more from the Fed so reserves decrease.

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Definitions:

Orexin Levels

The concentration of orexin peptides in the body, which are crucial in regulating wakefulness and appetite.

Hunger-Dampening Hormone

A biochemical that suppresses appetite, such as leptin, which is produced by fat cells.

Leptin

A hormone produced by fat cells that regulates body weight by signaling the brain to reduce appetite and burn fat stored in the body.

Fat Cells

Fat cells, also known as adipocytes, store energy in the form of fat and play key roles in metabolism, hormone regulation, and thermal insulation.