If the Fed Increases the Discount Rate

question 263

Multiple Choice

If the Fed increases the discount rate,

• A)commercial banks pay a higher interest rate if they borrow from the Fed.
• B)commercial banks pay a lower interest rate if they borrow from the Fed.
• C)commercial banks' assets increase.
• D)commercial banks find it more profitable to increase their loans to businesses.
• E)commercial banks increase their lending to the Fed.

---

Definitions:

Integrated Units

Military or organizational units made up of members from multiple racial backgrounds, particularly significant in contexts where segregation was previously practiced.

Spontaneous Recovery

refers to the unexpected reappearance of a previously extinguished conditioned response after a period of no exposure to the conditioned stimulus.

Cravings

An intense desire or longing for a specific substance or experience, often associated with addiction and withdrawal.

Coffee Break

A short rest period during work hours, often used for informal socializing or consuming beverages, such as coffee.