Help me answer this 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 **increases** banks' incentives to borrow reserves from the Federal Reserve, thereby **increasing** the quantity of reserves in the banking system and causing the money supply to **increase**.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 **decreases**, banks' need to borrow from each other **increases**, and the federal funds rate **increases**.

The discount rate is the interest rate charged to commercial banks and other financial organizations for short-term loans they take from the Central Bank. The discount rate alludes to the interest rate utilized in discounted cash flow (DCF) examination to determine the present value of future cash flows.The given answers are in order of the blanks: increases, increasing, rise decreases, rises, increases Explanation- A lower discount rate increases the bank's incentive to borrow as the cost of borrowing falls. Consequently, the reserves with the banks increase; banks' capacity to create loans increases and therefore the money supply in the economy rises. Due to the sale of open-market government bonds, the number of reserves in the banking system decreases. It is greater for the banks to borrow from each other and the demand for interbank borrowing increases. Consequently, the federal funds rate increases.