ECONOMICS
MONETARY POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Interest rate that the Federal Reserve System charges on loans to the nation’s financial institutions.
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discount rate
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prime rate
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monetary rate
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explicit rate
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Explanation:
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: -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-3: -A: The Federal Reserve sets a key interest rate, called the federal funds rate, which is the rate banks charge to each other for very short-term loans.
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