Answer:
B and D
Explanation:
A discount rate is the interest rate the Fed charges commercial banks when they borrow money from it. Commercial banks may borrow from the fed to meet the reverse requirement and sometimes to issue loans. The discount rate is directly related to the interest rates that banks charge customers. If the Fed lends to commercial banks at a high rate, the banks' charges customer a higher rate. A low discount rate means lower interest rate hence affordable loans.
When the Fed buys securities from commercial banks, it injects money in commercials banks. The Feb will be increasing the money available to commercial banks to lend out. When the Fed buys securities from commercial banks is referred to as open-market-operation.
