2. Assess each comment and either True, False, or Uncertain. Be sure to explain your response.

(a.) “Typically speaking, one should expect that the federal funds rate will rarely be above the discount rate.”

(b.) “By paying interest on reserve accounts, the Fed is limiting the effects of infation resulting from its balance sheet expansion during and after the Fnancial crisis.”

Answer rating: 100% (QA)

a False The Federal Reserves discount rate is typically set higher than the federal funds rate The f... View the full answer