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