Which sentence best completes the diagram? The Federal Reserve
decreases the discount rate.
A. Banks decrease their prime rate.
B. The Open Market Committee buys treasury securities.
C. Banks increase their prime rate.
D. The Open Market Committee sells treasury securities.

The correct option is A: Banks decrease their prime rate.

Explanation:

When the government through the Federal Reserve ups the discount rate, other rates tend to follow in the same direction. The reverse is also true.

The discount rate is the rate at which the Federal Reserve lends to Commercial Banks. Commercial banks on the other hand, in order to keep the profit, are forced to adjust their prices in the direction of the discount rate.

The prime rate is the rate at which commercial banks lend to their customers who have very good credit ratings.

The discount rate in economics is one of the monetary policy tools available for use by the government. It is used to adjust factors such as money supply and inflation.

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the correct answer is: (1) affected by gerrymandering; (2) not affected by gerrymandering.

gerrymandering is known as a practice that intends to establish a some kind of political advantage for a particular party or group. to do this district boundaries are manipulated. the new resulting district is named a gerrymandering.

in other words, what gerrymandering does is to draw the boundaries of electoral districts trying to benefit the party who is doing it. sometimes, the party controlling the legislature will redraw it so they can maximize the number of districts they are likely to control.