Aplia Homework: TheM xy MindTap Cengage Lea ×NG Aplia 9, 9. Banking Requ co ong

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Aplia Homework: TheM xy MindTap Cengage Lea ×NG Aplia 9, 9. Banking Requ co ong cengage com static/n/ui/index.html?nbId-6399608 nbNodeid-236244185&deploymentid;=94039952317862857542048&eISBA-978128;a ::: Apps DELMAR Anatomy TAMU D MISC Mail korullotns@we R 9 Khameleon808 Pas N The Nation Q PSYCH 210 CHP 11 A 150mL Sample Of o The discount rate is the interest rate on loans that the Federal Reserve makes to banks. Banks occasionally borrow from the Federal Reserve when they find themselves short on reserves. A lower discount rate decreasesbanks' incentives to borrow reserves from the Federal Reserve, thereby decreasing the quantity of reserves in the banking system and causing the money supply to fall The federal funds rate is the interest rate that banks charge one another for short-term (typically overnight) loans. When the Federal Reserve uses open market operations to sell government bonds, the quantity of reserves in the banking system increases banks need to o row on each other rises | , and the federal funds rate increases Grade It Now Save & Continue Continue without saving Type here to search 2:06 PM 11/7/2017

Explanation / Answer

Ans

A lower discount rate

Increases banks incentive to borrow

Increasing bank reserves

Money supply to increase

Quantity of reserves increase

Decreases

Decreases

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