Answer Happy

These are Money and Banking True / False Questions. Please
answer and provide explanation

1. The Federal Reserve typically acts as the “lender of first
resort” for the U.S. banking system rather than the “lender of last
resort.” Such action is carried out by the discount window of
the Federal Reserve. (T/F)
2. When the required reserve ratio is decreased, the
excess reserves of commercial banks are increased and the multiple
by which the banking system can lend is increased. (T/F)
3. In recent years, commercial banks have sometimes been reluctant
to borrow from the Federal Reserve’s discount window because they
do not want to raise concerns with their clients about their
liquidity and stability. (T/F)
4. In the market for bank reserves, when the federal funds rate is
3 percent, lowering the interest rate that the Federal Reserve pays
on bank excess reserves from 2 percent to 1 percent lowers the
federal funds rate. (T/F)