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:

Subcontractor

An individual or business that signs a contract to perform part or all of the obligations of another's contract.

Unsecured Credit

A type of loan or credit that is not backed by collateral, meaning the lender relies on the borrower's creditworthiness and promise to repay.

Lowest Risk

Involves choosing an option that minimizes potential hazards or losses.

Submaterialman

An individual or business that supplies materials to a subcontractor, assisting in fulfilling the subcontractor's obligations.