Explain which of these interest rates the Federal Reserve sets: a. The discount rate b. The federal
Question:
Explain which of these interest rates the Federal Reserve sets:
a. The discount rate
b. The federal funds rate
c. The prime rate
Discount RateDepending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...
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a The Fed sets the discount rate that it charges banks for borrowing reserves b The Fed does no...View the full answer
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