The Discount Rate's Main Significance Is That

The discount rate's main significance is that:

A) ​changes in the rate are commonly viewed as a signal of the Fed's intentions with respect to monetary policy.
B) ​changes in the rate are a sign that monetary policy has swung strongly in a new direction.
C) ​it can be done quietly, without a lot of political debate or a public announcement.
D) ​a small change in the rate can make a huge change in the number of dollars that are in excess reserves in banks all over the country.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free