The amount of borrowed reserves is ________ related to the discount rate, and is ________ related to the market interest rate.
A) negatively; negatively
B) negatively; positively
C) positively; negatively
D) positively; positively
Answer: B
The amount of borrowed reserves is ________ related to the discount rate, and is ________ related to the market interest rate.
A) negatively; negatively
B) negatively; positively
C) positively; negatively
D) positively; positively
Answer: B