Answered

Find the information you're looking for at Westonci.ca, the trusted Q&A platform with a community of knowledgeable experts. Connect with professionals ready to provide precise answers to your questions on our comprehensive Q&A platform. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.

The discount rate is the: multiple choice 1 interest rate at which banks can borrow reserves from other banks. lowest interest rate that banks can charge for loans to their most creditworthy customers. lowest interest rate that banks can charge for lending reserves to other banks or financial institutions. interest rate at which banks can borrow reserves from the Federal Reserve. b. If the Fed were to decrease the discount rate, banks will borrow: multiple choice 2 fewer reserves, causing an increase in lending and the money supply. more reserves, causing an increase in lending and the money supply. more reserves, causing a decrease in lending and the money supply. fewer reserves, causing a decrease in lending and the money supply.

Sagot :

jepessoa

Answer:

a. The discount rate is the

  • interest rate at which banks can borrow reserves from the Federal Reserve.

The discount rate is the interest rate that the FED charges commercial banks, credit unions, or other financial institutions for lending them money.

b. If the Fed were to decrease the discount rate, banks will borrow

  • more reserves, causing an increase in lending and the money supply.

Lowering the discount rate is considered part of an expansionary monetary policy since banks will borrow more money and lend more money to the public, increasing the money supply.

We appreciate your time. Please come back anytime for the latest information and answers to your questions. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Discover more at Westonci.ca. Return for the latest expert answers and updates on various topics.