Multiple Choice
The discount rate is
A) the interest rate paid when a bank borrows reserves from another bank.
B) the interest rate paid when a commercial bank borrows reserves from the Fed.
C) the reduction in the interest rate given to the bank's best customers.
D) another name for the long-term interest rate.
E) the interest rate the Fed pays banks for the reserves the banks keep at the Fed.
Correct Answer:
Verified
Correct Answer:
Verified
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