The discount rate is
A. set in the money market.
B. set by each member bank.
C. set by the Federal Reserve District Banks.
D. the same as the federal funds rate.
C. set by the Federal Reserve District Banks.
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Which of the following statements is true?
A) Optimizers with the highest opportunity cost of time push up the rental price of apartments with the highest commute time. B) Optimizers with the lowest opportunity cost of time push up the rental price of apartments with the lowest commute time. C) As the rental prices of downtown apartments rise, only workers with the highest opportunity cost of time will be willing to rent them. D) As the rental prices of downtown apartments rise, only workers with the lowest opportunity cost of time will be willing to rent them.
On average, for the last 100 years or more, real GDP per capita in the United States has increased by
A) 0.5% per year. B) 1% per year. C) 2% per year. D) 4% per year.
Suppose a country, whose production and consumption of coffee is large relative to the world market, has just entered the global market. If the country is a net exporter of coffee, we would expect the world:
A. supply curve to shift more to the left than the world demand curve as a result. B. demand curve to shift more to the right than the world supply curve as a result. C. demand curve to shift more to the left than the world supply curve as a result. D. supply curve to shift more to the right than the world demand curve as a result.
In the late 1990s, Brazil decided to reduce the value of its currency, the real, in order to boost exports and help the economy to move out of a recession. Argentina, the main trade competitor of Brazil in various products, was immediately affected by Brazil's decision, since it would:
A. decrease Argentina's imports and decrease Argentina's trade deficit. B. increase Argentina's exports and decrease Argentina's trade deficit. C. decrease Argentina's exports and increase Argentina's trade deficit. D. increase Argentina's imports and decrease Argentina's trade deficit.