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:

Power Factor

The ratio of the real power flowing to the load to the apparent power in the circuit, indicating how effectively electrical power is converted into useful work output.

RC Parallel Circuit

An electrical circuit composed of resistors (R) and capacitors (C) connected in parallel, affecting the total impedance seen by an alternating current (AC) source.

R

A symbol commonly used to represent resistance in electrical circuits, measured in ohms (Ω).

Reactive Power

The portion of electricity that oscillates between the source and load in an AC system, essential for maintaining the voltage to deliver active power (work) but itself does no work.