Multiple Choice
One problem with using discount rate changes to influence deposit creation or destruction is that
A) small changes in the rate do not have much impact
B) the discount rate changes are covert
C) banks like to borrow from the Fed,and they will borrow even more after the changes
D) the Fed must change the discount rate each time they meet
E) banks do not have enough control over their demand deposits
Correct Answer:

Verified
Correct Answer:
Verified
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