What is the discount rate?(1 point) Responses The discount rate is a misnomer, as it is the interest rate at which financial institutions charge to the riskiest of borrowers. The discount rate is a misnomer, as it is the interest rate at which financial institutions charge to the riskiest of borrowers. The discount rate is the interest rate banks charge each other for overnight and short-term lending. The discount rate is the interest rate banks charge each other for overnight and short-term lending. The discount rate is interchangeable with prime rate, the interest rate at which financial institutions charge to its least-risky, or best, customers. The discount rate is interchangeable with prime rate, the interest rate at which financial institutions charge to its least-risky, or best, customers. The discount rate is the interest rate at which the Federal Reserve charges to financial institutions on loans issued at the discount window.
1 answer
The discount rate is the interest rate at which the Federal Reserve charges to financial institutions on loans issued at the discount window.