The discount window provides:
A. guaranteed emergency funds for banks in trouble at a higher interest rate than federal funds rate.
B. loans to banks at low interest rates, so they can lend more money out to the public.
C. guaranteed emergency funds for banks in trouble at a lower interest rate than others.
D. loans to banks at low interest rates, only when the economy is doing well.
A. guaranteed emergency funds for banks in trouble at a higher interest rate than federal funds rate.
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In the 2-factor, 2 good Heckscher-Ohlin model, the production possibility frontier is kinked when
A) there is no factor substitution in production. B) the opportunity cost of production is constant. C) there are unemployed factor resources. D) a country does not engage in trade. E) transportation costs are very high.
Reorganization of the airline industry came in two waves, one led by large long-established airlines and the other led by new entrants to the industry
Indicate whether the statement is true or false
The discount rate is the interest rate
a. commercial banks charge their low-risk customers for a loan. b. savings and loan associations pay for using savings deposit funds. c. the U.S. Treasury pays individuals who buy Treasury bonds in denominations of $10,000 or more. d. the Federal Reserve charges banking institutions for borrowing its funds.
A government might use tax to:
a) Discourage consumption of goods with positive externalities b) Discourage consumption of public goods c) Discourage consumption of merit goods d) Discourage consumption of goods with negative externalities