ECON 100_ SOPHIA_PATHWAY__MACROECONOMICS_Milestone_3

ECON 100_ SOPHIA_PATHWAY__MACROECONOMICS_Milestone_3 Which of the following statements applies to the discount rate? • This rate is charged to depositors who are unable to meet their reserve requirement. • The fed funds rate is the same as this rate. • This rate is used when banks borrow directly from the Fed. • The Fed does not directly control this rate. CONCEPT Discount Rate 2 A(n) __________ is a system where banks in the United States eventually figured out that they could print more __________ than the gold that they had in their vaults. • fractional reserve; paper money • open market operation; fiduciary currency • fractional reserve; fiduciary currency • open market operation; paper money CONCEPT Fractional Gold Standard/Fiat Currency.....