The Fed tends not to use discount policy as its principal tool in influencing the money supply since
A) discount loans do not affect the money supply.
B) it does not have as much control over discount loans as it has on open market operations.
C) it is prohibited from doing so by an act of Congress.
D) it prefers to use reserve requirements.
B
Economics
You might also like to view...
What is meant by productive efficiency? How does a perfectly competitive firm achieve productive efficiency?
What will be an ideal response?
Economics
The demand for houses decreases, all else equal, when
A) wealth increases. B) real estate prices are expected to increase. C) stock prices become more volatile. D) gold prices are expected to increase.
Economics