The discount rate is a the interest rate on loans

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8) The discount rate is A) the interest rate on loans from the Fed to a bank. B) the price the Fed pays for government securities. C) the interest rate on loans of reserves from one bank to another. D) the price banks pay the Fed for government securities. E) the interest rate on loans from a bank to the federal government. Answer: A 9) Holding everything else constant, if the federal funds rate rises, then 10) Holding everything else constant, if the federal funds rate falls, then 90
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11) An open market purchase 12) The supply curve for reserves shifts to the left and the federal funds rate rises when A) the Fed raises reserves requirements or does an open market sale. B) the Fed raises the discount rate or does an open market purchase. C) the Fed raises the discount rate or does an open market sale. D) the Fed raises reserves requirements or raises the discount rate. Answer: C 13) The demand curve for reserves shifts to the left and the federal funds rate falls when
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