The Discount Rate Is

question 44

Multiple Choice

The discount rate is

• A)the interest rate charged by the Federal Reserve banks on loans to banking institutions
• B)the interest rate banks charge each other for loans
• C)the rate banks charge their best business customers
• D)the rate of discount that banks use to determine the true mortgage rate
• E)the fraction of deposits that banks hold as reserves

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Definitions:

Monetary Value

Monetary value represents the worth of an item, service, or asset expressed in terms of money or currency.

Net Income

The final amount a company retains as earnings after subtracting costs and taxes from its gross income.

Revenue

The total amount of money a company generates from its business activities, such as sale of goods or services, before any expenses are subtracted.

Asset

Property or something of value owned by a person or business that is considered as a resource having economic value expected to provide future benefits.