The Discount Rate Is the Interest

question 175

Multiple Choice

The discount rate is the interest

• A) rate at which the central banks lend to the U.S. Treasury.
• B) rate at which the Federal Reserve Banks lend to commercial banks.
• C) yield on long-term government bonds.
• D) rate at which commercial banks lend to the public.

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Definitions:

Nominal Variable

A type of variable that represents categories with no intrinsic ordering or rank among them.

Indicator Variables

Binary variables used in regression analysis, taking the value of either 0 or 1 to denote the absence or presence of a categorical effect.

Analysis of Variance

A statistical method used to compare the means of three or more samples to determine if at least one of them is significantly different from the others.

Dummy Variable

A binary variable used in regression analyses to represent categories of a nominal variable.