The Discount Rate Is the Interest Rate That

question 63

Multiple Choice

The discount rate is the interest rate that:

• A)banks charge on large loans.
• B)banks charge on loans to other banks.
• C)the Fed charges on loans to branches of the U.S.government.
• D)the Fed charges on loans to depository institutions.
• E)the Fed charges on loans to the public.

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Definitions:

Desired by Society

Pertains to something that is widely regarded as beneficial or needed by the majority of the community or population.

Market Price

The current price at which an asset or service can be bought or sold in the open market.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, resulting in market balance.