The discount rate:
a. Is a weak monetary tool in the sense that central banks cannot force banks to borrow if the banks have excess reserves.
b. Can have powerful announcement effects.
c. Is the loan rate charged by central banks to financial intermediaries.
d. All the above.
e. None of the above.
.D
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Customers who have long-term relationships with banks
A) pose particular problems with respect to adverse selection. B) pose particular problems with respect to moral hazard. C) often obtain credit at a lower rate or with fewer restrictions. D) are more likely to default or violate restrictive covenants.
The alternate-section provision was designed to:
a. allow the government to share in increased land values resulting from railroad building. b. encourage private businesses to locate along railroad routes. c. discourage farmers from cultivating crops near railroad routes. d. make railroad stations more accessible to families.