ECONOMICS
FEDERAL RESERVE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Federal Rate
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Discount Rate
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Prime Rate
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Interest Rate
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Detailed explanation-1: -The discount rate is the interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve Bank’s lending facility-the discount window.
Detailed explanation-2: -Basic Info. US Discount Rate is at 4.75%, compared to 4.75% the previous market day and 0.25% last year. This is higher than the long term average of 1.94%.
Detailed explanation-3: -What is the current federal reserve interest rate? The current Federal Reserve interest rate, or federal funds rate, is 4.50% to 4.75% as of Feb. 2, 2023.
Detailed explanation-4: -The discount rate is the rate at which the central bank lends to banks as a lender of last resort. The Federal Reserve sets both rates. The fed funds rate will always be lower than the discount rate.