When Banks Borrow Directly from the Fed,the Interest Rate on Those

question 2

Multiple Choice

When banks borrow directly from the Fed,the interest rate on those loans is the:

• A) prime rate.
• B) discount rate.
• C) Federal Funds rate.
• D) required reserve rate.

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Definitions:

Public Sector

Part of the economy composed of government services and enterprises, including healthcare, education, and public safety, aimed at serving the citizens.

Organizational Processes

The set of activities and procedures undertaken by an organization to achieve its objectives efficiently and effectively.

Structure

The arrangement or organization of interrelated elements in a system, whether it be physical, social, or organizational.

Performance

The action or process of carrying out or accomplishing an action, task, or function.