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:

Cut-Price Store

A retail outlet offering goods for sale at significantly reduced prices, often specializing in discounts or bulk purchasing options.

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Coat

An outer garment worn outdoors, typically extending below the hips and having sleeves.

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A smartphone model designed and marketed by Apple Inc., known for its innovative technology and operating system.