ECONOMICS
MONETARY POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The minimum interest rate set by the Federal Reserve for lending to other banks.
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Reserve Rate
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Discount Rate
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Either A or B
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None of the above
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Explanation:
Detailed explanation-1: -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. The Federal Reserve lowered the target range for the federal funds rate to 0 to 1/4 percent.
Detailed explanation-2: -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.
There is 1 question to complete.