When the Fed makes a discount loan, the impact on the Banking System's balance sheet will reflect:
A. An increase in liabilities with no change in assets.
B. An increase in assets and a decrease in liabilities.
C. A decrease in assets and an increase in liabilities.
D. None of the above.
Answer:D
When the Fed makes a discount loan, the impact on the Banking System's balance sheet will reflect:
A. An increase in liabilities with no change in assets. B. An increase in assets and a decrease in liabilities. C. A decrease in assets and an increase in liabilities. D. None of the above.