## An increase in the discount rate would have the effect of quizlet

A is the answer. But B is wrong because in order to compensate for greater risk, the discount rate will have to increase (not decrease). The discount rate is also the required rate of return. So with greater risk comes greater requirement for higher rate of return. This lesson explains how changes in the discount rate affect the money supply and how the central bank can use the discount rate as part of monetary policy. Study.com has thousands of articles

SOLUTION Since 8% is the yearly interest rate, we need to know the time of the loan in years. We can convert 11 1.06090. This shows that \$1 will increase to \$1.06090, to discuss the effect of the frequency of compounding on different� III The market value of the common stock will increase Changing reserve requirements has the largest impact on money supply levels, due to the effect of The Federal Reserve will loan funds at the discount rate to which of the following? This knowledge will give treatment providers greater insight into stimulant users For substances of abuse to exert their effects, they must first get to the brain. increase heart rate, increase respiration rate, increase body temperature, cause� An increase in the discount rate would have the effect of _____. a) tightening of the money supply b) more people wanting to borrow money c) more businesses wanting to borrow money d) loosening of the money supply

## The Federal Reserve discount rate is how much the U.S. central bank charges its member banks to borrow from its discount window to maintain the reserve it requires. The Federal Reserve Board of Governors lowered the rate to 0.25% on March 16, 2020.

1. An increase in the discount rate: A) will increase the present value of future cash flows. B) will have no effect on net present value. C) will reduce the present value of future cash flows. D) is one method of compensating for reduced risk. 2. Suddeth Corporation has entered into a 6 year lease for a building it will use as a warehouse. The Federal Reserve discount rate is how much the U.S. central bank charges its member banks to borrow from its discount window to maintain the reserve it requires. The Federal Reserve Board of Governors lowered the rate to 0.25% on March 16, 2020. A is the answer. But B is wrong because in order to compensate for greater risk, the discount rate will have to increase (not decrease). The discount rate is also the required rate of return. So with greater risk comes greater requirement for higher rate of return. Federal Discount Rate: The federal discount rate is the interest rate set by the Federal Reserve on loans offered to eligible commercial banks or other depository institutions as a measure to 22) A decrease in the discount rate will: A) increase the money supply. B) have an unclear effect on the money supply. C) not affect the money supply. D) decrease the money supply. 23) If the Federal Reserve conducts an open market sale the: A) interest rate will not change. B) interest rate will increase. C) money supply is increased. What effect would an increase in the discount rate have on money supply? We need you to answer this question! If you know the answer to this question, please register to join our limited beta The Federal Reserve discount rate is how much the U.S. central bank charges its member banks to borrow from its discount window to maintain the reserve it requires. The Federal Reserve Board of Governors lowered the rate to 0.25% on March 16, 2020.

### The most influential economics tool the central bank has under its control is the ability to increase or decrease the discount rate.Shifts in this crucial interest rate have a drastic effect on

Federal Discount Rate: The federal discount rate is the interest rate set by the Federal Reserve on loans offered to eligible commercial banks or other depository institutions as a measure to 22) A decrease in the discount rate will: A) increase the money supply. B) have an unclear effect on the money supply. C) not affect the money supply. D) decrease the money supply. 23) If the Federal Reserve conducts an open market sale the: A) interest rate will not change. B) interest rate will increase. C) money supply is increased. What effect would an increase in the discount rate have on money supply? We need you to answer this question! If you know the answer to this question, please register to join our limited beta

### This lesson explains how changes in the discount rate affect the money supply and how the central bank can use the discount rate as part of monetary policy. Study.com has thousands of articles

Investing with Impact Report Cover | St. Louis Fed The discount rate is the interest rate Reserve Banks charge commercial banks for short-term loans. The Board of Governors has sole authority over changes to reserve requirements. and decrease lending, the FOMC could increase the interest rate paid on reserves,� Adjusting the discount rate is one of the primary tools by which the Fed can in a bank and I borrow that \$1,000, the money supply has increased by \$1,000. Appendix C: Present Discounted Value Similarly, if you demand a loan to buy a car or a computer, you will need to pay interest At an above-equilibrium interest rate like 21%, the quantity of financial capital supplied would increase to at a relatively high level is nonbinding, and it will have no practical effect unless the� because they have experienced a greater increase in factors of production ( capital). It would just change the scale in the previous two graphs by a factor of 10 equilibrium quantity will rise; the effect on the equilibrium price is ambiguous b. SOLUTION Since 8% is the yearly interest rate, we need to know the time of the loan in years. We can convert 11 1.06090. This shows that \$1 will increase to \$1.06090, to discuss the effect of the frequency of compounding on different� III The market value of the common stock will increase Changing reserve requirements has the largest impact on money supply levels, due to the effect of The Federal Reserve will loan funds at the discount rate to which of the following? This knowledge will give treatment providers greater insight into stimulant users For substances of abuse to exert their effects, they must first get to the brain. increase heart rate, increase respiration rate, increase body temperature, cause�

## An increase in the discount rate would have the effect of _____. a) tightening of the money supply b) more people wanting to borrow money c) more businesses wanting to borrow money d) loosening of the money supply

To lessen the effect of the natural business cycle. What is the cost of money. What effect would increase in the discount rate have on the money supply. Quizlet Live. Quizlet Learn. Diagrams. Flashcards. Mobile. Help. Sign up. Help Center. Honor Code. Community Guidelines. Students. The time it takes for monetary policy to have an effect. Outside lag. What effect would an increase in the discount rate have on the money supply? Quizlet Live. Quizlet Learn. Diagrams. Flashcards. Mobile. Help. Sign up. Help Center. Honor Code. Community Guidelines. Students. Teachers. About. Reserves increase if the Federal Reserve a. raises the discount rate or auctions more credit. b. raises the discount rate but not if it auctions more credit. c. lowers the discount rate or auctions more credit. d. lowers the discount rate but not if it auctions more credit. How Does a High Discount Rate Affect the Economy? Updated Jun 25, 2019. Setting a high discount rate tends to have the effect of raising other interest rates in This leads to an increase 1. An increase in the discount rate: A) will increase the present value of future cash flows. B) will have no effect on net present value. C) will reduce the present value of future cash flows. D) is one method of compensating for reduced risk. 2. Suddeth Corporation has entered into a 6 year lease for a building it will use as a warehouse.

Reserves increase if the Federal Reserve a. raises the discount rate or auctions more credit. b. raises the discount rate but not if it auctions more credit. c. lowers the discount rate or auctions more credit. d. lowers the discount rate but not if it auctions more credit. How Does a High Discount Rate Affect the Economy? Updated Jun 25, 2019. Setting a high discount rate tends to have the effect of raising other interest rates in This leads to an increase 1. An increase in the discount rate: A) will increase the present value of future cash flows. B) will have no effect on net present value. C) will reduce the present value of future cash flows. D) is one method of compensating for reduced risk. 2. Suddeth Corporation has entered into a 6 year lease for a building it will use as a warehouse.