The Interest Rate the Federal Reserve Charges Banks Which Borrow

question 65

Multiple Choice

The interest rate the Federal Reserve charges banks which borrow reserves at the Federal Reserve's discount window is called the:

• A)federal funds rate.
• B)discount rate.
• C)prime interest rate.
• D)mortgage interest rate.

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Definitions:

Autarky Price

is the price of a good in a closed economy that does not engage in international trade, determined solely by domestic supply and demand.

Beef

A type of meat obtained from cattle, widely consumed as a food product.

Tulips

A type of flowering plant known for its bright colors and variety, often associated with the Netherlands.

Exporting Industry

An industry that primarily produces goods or services for consumption outside the domestic market.