The Discount Rate Is

question 52

Multiple Choice

The discount rate is

• A)equal to the nominal interest rate minus the inflation rate.
• B)the interest rate that commercial banks have to pay for any reserves that they borrow from the non-bank public.
• C)the interest rate that commercial banks receive for the reserves that they have on reserve at the Fed.
• D)the interest rate that commercial banks have to pay to the owners of bank deposits.
• E)the interest rate that commercial banks pay for reserves that they borrow from the Fed.

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