The Discount Rate,by Definition,is the

question 153

Multiple Choice

The discount rate,by definition,is the

• A) rate at which loans are issued between banks and the Federal Reserve.
• B) interest rate charged by banks on interbank loans.
• C) difference between the interest paid for deposits and the interest gained from loans.
• D) percentage of deposits that must be held back and not loaned out.
• E) interest rate on the loans made by the Federal Reserve to private banks.

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Definitions:

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