The Discount Rate Is

question 2

Multiple Choice

The discount rate is

• A)the rate at which public banks lend to other public banks.
• B)the rate at which the Fed lends to banks.
• C)the percentage difference between the face value of a Treasury bond and what the Fed pays for it.
• D)the percentage of deposits banks hold as excess reserves.

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Definitions:

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The action of continuing steadfastly or firmly in some state, purpose, course of action, or the pursuit of an objective.

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