Question

The fed plans to raise the discount rate to 7% this indicates that: a. bank borrowing funds from the fed will now pay 7% on the amount they borrow

b. banks must hold funds in their vault or on deposit with the fed equal to at least 7% of their deposits.
c. the fed will pay 7% on any securities issued by the federal government during the current time period. d. the amount of money in circulation can be no more than 7% greater than the amount of gold held in reserve by the government.

Answer 1

a

Step-by-step explanation:

BC they plan to raise the discount 7%