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The Interest Rate That Banks Are Charged When They Borrow

question 180

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The interest rate that banks are charged when they borrow reserves from other banks is the


Definitions:

Marginal Cost

The financial commitment needed for producing an extra unit of a good or service.

Marginal Revenue

The addition to total revenue resulting from the sale of one more unit of a product or service.

ATC

Average Total Cost; the total cost of production (fixed and variable costs combined) divided by the number of units produced.

Price Charged

The amount of money a buyer has to pay to acquire a product or service from a seller.

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