Question

higher mean a bank has to pay a higher rate on the money it borrows from the federal reserve.

a.) money supply needs

b.) inflation limits

c.) discount rate controls

d.) reserve requirements

Explanation:

The discount rate is the interest rate the Federal Reserve charges banks for loans. A higher discount rate means banks pay more to borrow from the Fed. Money - supply needs, inflation limits, and reserve requirements are not directly related to the rate a bank pays to the Fed for borrowing.

Answer:

c. discount rate controls