When the Fed makes a discount loan, the impact on the Fed's balance sheet will reflect:
A. No change in liabilities but an increase in assets.
B. A decrease in assets and liabilities.
C. An increase in assets and liabilities.
D. An increase in assets and a decrease in liabilities.
Answer:C
When the Fed makes a discount loan, the impact on the Fed's balance sheet will reflect:
A. No change in liabilities but an increase in assets. B. A decrease in assets and liabilities. C. An increase in assets and liabilities. D. An increase in assets and a decrease in liabilities.