Asked by Parker Elliott on Jun 27, 2024
Verified
The interest percent charged by the Fed on loans to depository institutions is knows as the
A) discount rate.
B) prime rate.
C) federal funds rate.
D) commercial paper rate.
E) CD rate.
Discount Rate
The interest rate charged by central banks on loans they give to commercial banks and other financial institutions.
Fed
The Federal Reserve System, which is the central banking system of the United States, responsible for monetary policy.
Loans
Money borrowed that is expected to be paid back with interest.
- Attain understanding of the tasks and implements the Federal Reserve operates in managing monetary policy.
Verified Answer
ZK
Zybrea KnightJul 02, 2024
Final Answer :
A
Explanation :
The interest percent charged by the Fed on loans to depository institutions is known as the discount rate.
Learning Objectives
- Attain understanding of the tasks and implements the Federal Reserve operates in managing monetary policy.