How can a change in the discount rate affect commercial loan rates?

Question:

How can a change in the discount rate affect commercial loan rates?
Discount Rate
Depending 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...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Basic Economics

ISBN: 978-1111826642

16th edition

Authors: Frank V. Mastrianna

Question Posted: