Overnight Loans from One Bank to Another for Reserve Purposes

question 53

Multiple Choice

Overnight loans from one bank to another for reserve purposes entail an interest rate called the

• A)prime rate.
• B)discount rate.
• C)federal funds rate.
• D)treasury bill rate.Topic: Money-Creating Transactions of a Commercial Bank

---

Definitions:

Portable

Capable of being easily carried or moved, especially in reference to electronic devices or equipment.

Cafeteria Plan

A type of employee benefit plan that allows workers to choose from a variety of pre-tax benefit options to design a benefits package that best suits their needs.

High Deductible

Refers to a health insurance policy with a higher deductible amount, requiring the insured to pay more out-of-pocket costs before the insurance starts covering medical expenses.

Qualified Health Plan

A health insurance plan that meets the requirements set by the Affordable Care Act, including essential health benefits, consumer protections, and coverage for pre-existing conditions.