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.

Answers

Answer 1

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.


Related Questions

Marigold Corp. constructed a building at a cost of $13600000. Weighted-average accumulated expenditures were $5700000, actual interest was $560000, and avoidable interest was $280000. If the salvage value is $1110000, and the useful life is 40 years, depreciation expense for the first full year using the straight-line method is $326250. $319250. $347000. $461750.

Answers

Answer:

$121,750

Explanation:

Cost of the building = 13600000

Average accumulated expenses = 5700000

Actual interest = 560000

Avoidable interest = 280000

Salvage value = 1110000

Life in years = 40 years

Depreciation expenses for 1st full year = {(Average accumulated expenses + Avoidable interest) - Salvage value} / Life in years

Depreciation expenses for 1st full year = (5700000 + 280000 - 1110000) / 40

Depreciation expenses for 1st full year = 4870000 / 40 years

Depreciation expenses for 1st full year = $121,750

Drag each example to the corresponding step in the new-product development process.
1. Idea Generation
2. Concept Testing
3. Product Development
4. Market Testing
5. Product Launch
6. Evaluation of Results
A. Samples
B. Big box
C. Brainstorm
D. Prototypes
E. Strong sales
F. Presentation

Answers

Answer:

1. Idea Generation  ⇒ C. Brainstorm

Brainstorming is a process used to generate a large number of ideas where participating members contribute with any ideas that they can come up with.

2. Concept Testing  ⇒  B. Big box

3. Product Development   ⇒ D. Prototypes

When a company is developing a product, the firs thing that they will come up with is a prototype of the product.

4. Market Testing   ⇒ A. Samples

Free samples are important when you are testing a new product, e.g. handing out free samples

5. Product Launch   ⇒ F. Presentation

The formal presentation of a product takes place when the product is launched into the market.

6. Evaluation of Results  ⇒ E. Strong sales

The way that a company can evaluate if a product was accepted or not by the market is to see their sales records, if sales are strong, then the product was accepted.

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