Which of the Following Is Correct Regarding the Discount Rate

question 2

Multiple Choice

Which of the following is correct regarding the discount rate?

• A)It is the interest rate that commercial banks charge their most creditworthy customers.
• B)It is the interest rate that thrift institutions charge for home mortgages.
• C)It is the interest rate at which depository institutions can borrow from the Federal Reserve.
• D)It is the interest rate set in the market for U.S.Treasury Bills.
• E)It is the prime interest rate.

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