The Discount Rate Is

question 330

Multiple Choice

The discount rate is

• A)the interest rate paid when a bank borrows reserves from another bank.
• B)the interest rate paid when a commercial bank borrows reserves from the Fed.
• C)the reduction in the interest rate given to the bank's best customers.
• D)another name for the long-term interest rate.
• E)the interest rate the Fed pays banks for the reserves the banks keep at the Fed.

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