Under “normal” economic circumstances, the main instrument of monetary policy at central banks around the world is the a overnight interest rate (i.e., open market operations) b discount rate. c prime rate (defined by the Fed as the interest rate charged by the majority of the nation's top 25 domestic commercial banks) d reserve requirement
Under “normal” economic circumstances, the main instrument of monetary policy at central banks around the world is the a overnight interest rate (i.e., open market operations) b discount rate. c prime rate (defined by the Fed as the interest rate charged by the majority of the nation's top 25 domestic commercial banks) d reserve requirement
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Under “normal” economic circumstances, the main instrument of
a |
overnight interest rate (i.e., open market operations) |
|
b |
discount rate. |
|
c |
prime rate (defined by the Fed as the interest rate charged by the majority of the nation's top 25 domestic commercial banks) |
|
d |
reserve requirement.
|
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