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The discount rate is: a.

the interest rate banks charge other banks for loans. c. the perc...

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The discount rate is: a.

the interest rate banks charge other banks for loans.
c.
the percentage amount that the Federal Reserve discounts when it buys government securities.
b. the interest rate the Federal Reserve charges for loans to commercial banks.
d.
a tool of fiscal policy.

Answer

The discount rate is b.
the interest rate the Federal Reserve charges for loans to commercial banks.
The federal reserve facility, where commercial banks and other lending financial institution apply for their loan, is called the discount window.
The discount rate is applied on overnight loans of the commercial banks and other financial institution.

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Virtual Teaching Assistant: Colleen R.
Question Level: Basic
Karma: Free
Upload Date: 5/31/2017

This 47 words question was answered by Colleen R. on StudySoup on 5/31/2017. The question contains content related to Business Since its upload, it has received 151 views.

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