The interest rate that banks charge on loans to their best customers is called the:

Why does the Federal Reserve alter monetary policy?

(A) To provide services to member banks. (B) To enable banks to clear checks. (C) To lessen the effect of natural business cycles. (D) To regulate the banking industry.

Which of the following lists two things that both increase the money supply?

a. raise the discount rate and make open market purchases b. raise the discount rate and make open market sales c. lower the discount rate and make open market purchases d. lower the discount rate and make open market sales