NameECON 201March 11, 2019Module 9 Assignment1. What is the discount rate? What happens to the money supply when the FED raises thediscount rate?When it comes to borrowing money, commercial banks have two options. They caneither borrow money between them or borrow money from the FED. When commercial banksborrow money from the FED, this institution charges an interest rate based on the amount of theloan and other economic factors. This interest rate is called the discount rate (Center forFinancial Trading, 2016). Depending on the quantity of lending going to the economy, theFederal ...
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