The Central Bank of Lithutia Charges an Interest Rate of 2

question 26

Multiple Choice

The central bank of Lithutia charges an interest rate of 2 percent from the country's commercial banks to borrow money. In this scenario, the interest rate is called the _____.

• A) premium rate
• B) discount rate
• C) exchange rate
• D) tax rate

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Definitions:

Checking Account

A bank account that allows for frequent transactions, including deposits, withdrawals, and check payments.

Checking Account

A bank account that allows for numerous withdrawals and deposits, making it ideal for daily transactions.

Bank Account

A financial account maintained by a bank or other financial institution in which the financial transactions between a customer and the bank are recorded.

Deposit

Money placed into a bank account or a sum paid in advance as security for the fulfillment of an arrangement.