Monetary Policy
AP Macroeconomics · Flashcards · Recall
AP MACROECONOMICS · FLASHCARDS
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QUESTION
Identify the term for the rate at which banks can borrow reserves from each other overnight.
QUESTION
What is a central bank's balance sheet composed of?
QUESTION
What is the discount rate?
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ANSWER
The interest rate charged to commercial banks on loans from the Fed. This rate influences banks' willingness to borrow from the Fed.
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