Do discount rates vary if financial institutions opt to funds within regions as
ID: 1180200 • Letter: D
Question
Do discount rates vary if financial institutions opt to funds within regions as opposed to borrowing funds directly from the Federal Reserve? If the Federal Reserve Requirement dropped do you believe financial institutions would be cautious with their monies or do you believe they would be able to lend out additional monies to consumers and businesses? What is the money multiplier and how is it used to create additional monies? Do discount rates vary if financial institutions opt to funds within regions as opposed to borrowing funds directly from the Federal Reserve? If the Federal Reserve Requirement dropped do you believe financial institutions would be cautious with their monies or do you believe they would be able to lend out additional monies to consumers and businesses? What is the money multiplier and how is it used to create additional monies? Do discount rates vary if financial institutions opt to funds within regions as opposed to borrowing funds directly from the Federal Reserve? If the Federal Reserve Requirement dropped do you believe financial institutions would be cautious with their monies or do you believe they would be able to lend out additional monies to consumers and businesses? What is the money multiplier and how is it used to create additional monies?Explanation / Answer
No the discount rates does not vary at times when the institutuions opt for fund within regions.
The federal government actually reached the legal debt ceiling about four months ago. Since then, the government has been financing its monthly budget deficit by stealing/borrowing money from other government funds, like the federal government employees
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