Quizzol

QUESTION:

The discount rate is _______.

a. the interest rate the public pays when borrowing from banks

b. the interest rate the Fed charges on loans to banks

c. the interest rate banks pay on the public's deposits

d. the interest rate paid by banks at the Term Auction Facility

e. the interest rate the Fed pays on reserves

ANSWER:

b. the interest rate the Fed charges on loans to banks

Posted by Cleveland on September 9, 2024