An increase in the discount rate
A) increases the cost of reserves borrowed from the Fed.
B) signals the Fed's desire to increase the money supply.
C) signals the Fed's desire to lend increased reserves to banks.
D) reduces the cost of reserves borrowed from the Fed.
A
Economics
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When the Federal Reserve engages in a repurchase agreement to offset a withdrawal of Treasury funds from the Federal Reserve, the open market operation is said to be
A) defensive. B) offensive. C) dynamic. D) reactionary.
Economics
Why may investors buy a Treasury bill with a negative real interest rate?
A) fear of rising inflation B) concern about high yields on other bonds C) fear of default by the U.S. government D) concern about the high default risk of alternative investments
Economics