Question: Which statement is true about the discount rate? a . ) It dictates the amount of money that banks should maintain in their vaults at
Which statement is true about the discount rate?
a It dictates the amount of money that banks should maintain in their vaults at all times.
b It is influenced by the multiplier effect.
c It involves banks loaning funds to one another so that they can meet their reserve level.
d It is the rate that the Fed charges member banks for shortterm loans.
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