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Sagot :
The required reserve ratio and the discount rate are Independent of one another. Option B
What is the reserve ratio?
Generally, The percentage of reservable liabilities that commercial banks are required to keep in reserves rather than lend out or invest is referred to as the reserve ratio.
The nation's central bank, which in the United States is the Federal Reserve, is the one responsible for imposing this stipulation on businesses. In certain circles, it is also referred to as the cash reserve ratio.
The interest rate that is levied on commercial banks and other financial institutions by the Federal Reserve Bank for short-term loans that these institutions take out is referred to as the discount rate.
The interest rate that is employed in discounted cash flow analysis (also known as DCF analysis) to assess the present value of future cash flows is referred to as the discount rate.
Read more about the discount rate.
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