Why do adjustments to the discount rate by the Federal Reserve Board matter?
What will be an ideal response?
Answer: An ideal response will:
1. Explain the role of the Federal Reserve in controlling the money supply by controlling the rate at which banks can borrow money. This then affects the rate at which banks loan money to consumers and businesses.
2. Describe how adjusting the discount rate up or down will affect the money supply.
3. Illustrate how lowering the discount rate reduces the cost of money, which makes borrowing easier, which increases spending and affects economic growth.
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a. fascist state. b. isolationist state. c. hegemon. d. Marxist state. e. None of the above is true.
Which governor was the first to establish an online presence?
A. Ann Richards B. George W. Bush C. Rick Perry D. Greg Abbott