The Discount Rate Is

question 129

Multiple Choice

The discount rate is:

• A) the interest rate that the Fed charges commercial banks for funds borrowed from the Fed.
• B) the interest rate commercial banks charge each other for lending funds.
• C) the interest rate commercial banks charge their new customer.
• D) none of the above

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Definitions:

Premature Closure

The tendency to make a decision or come to a conclusion before acquiring all relevant information.

Illogical Reasoning

A process of thought or argumentation that is not based on sound or rational principles, often containing fallacies or errors in logic.

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A theoretical framework in physics that proposes that the fundamental particles are not point-like dots, but rather tiny, vibrating strings.

Variable

An element, feature, or factor that is likely to vary or change.