The Fed will make a discount loan to a bank during a crisis:
A. but if the bank doesn't have collateral the interest rate is higher.
B. no matter what condition the bank is in.
C. only if the bank would fail without the loan.
D. only if the bank is sound financially and can provide collateral for the loan.
Answer: D
Economics
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The sum of the Fed's monetary liabilities and the U.S. Treasury's monetary liabilities is called
A) the money supply. B) currency in circulation. C) bank reserves. D) the monetary base.
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Explain why a tax increase on cigarettes in one state might not lead to a substantial price increase for all consumers in that state
What will be an ideal response?
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