The market where banks borrow from other banks for short periods of time is the:
a. discount market.
b. federal funds market.
c. inter-bank loan market.
d. national bank market.
e. liquidity market.
b
You might also like to view...
Which of the following statements is true?
A) when bond prices rise, real GDP and the price level rise. B) when bond prices fall, real GDP rises and the price level falls. C) when bond prices rise, the interest rate rises, and aggregate demand and the price level fall. D) when bond prices fall, the interest rate and aggregate demand fall.
Regarding the costs of regulation, which is a FALSE statement?
A) Airline safety standards have increased the price of air travel. B) Automobile safety standards raise the price of cars. C) Regulatory spending by federal agencies has decreased since 1970. D) Pharmaceutical manufacturing safety standards raise the price of drugs.