Changing the reserve requirement is such a powerful instrument of monetary policy that it is the most frequently used of all the available tools. TRUE/False :       The discount rate is the interest rate that one bank charges on a loan to another bank TRUE/False :

MACROECONOMICS FOR TODAY
10th Edition
ISBN:9781337613057
Author:Tucker
Publisher:Tucker
Chapter16: Monetary Policy
Section: Chapter Questions
Problem 13SQ
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  1. Changing the reserve requirement is such a powerful instrument of monetary policy that it is the most frequently used of all the available tools.

TRUE/False :

 

 

 

  1. The discount rate is the interest rate that one bank charges on a loan to another bank

TRUE/False :

 

 

 

  1. The present value of a bond is the rate of interest times the expected annual income flow

TRUE/False :

 

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