Which of the following is a cost of Fed discount operations? O A. Banks have to pay back the discount loans at the discount rate, which costs money. O B. Banks that deserve to go out of business due to poor management may survive because of Fed discounting to prevent bank panics. OC. The Fed has to pick and choose which banks receive discount loans, which banks dislike. OD. There are no costs to discount operations because the discount loans have to be paid back
Which of the following is a cost of Fed discount operations? O A. Banks have to pay back the discount loans at the discount rate, which costs money. O B. Banks that deserve to go out of business due to poor management may survive because of Fed discounting to prevent bank panics. OC. The Fed has to pick and choose which banks receive discount loans, which banks dislike. OD. There are no costs to discount operations because the discount loans have to be paid back
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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