When a Member Bank Borrows Reserves from the Fed

Multiple Choice

When a member bank borrows reserves from the Fed,

A) it pays an interest rate called the discount rate.
B) it pays no interest rate but is required to repay the loan within the stipulated period.
C) it pays an interest rate equivalent to the coupon rate on long-term government bonds.
D) it pays an interest rate equal to the federal funds in the reserves market.