The interest rate that the Fed charges when it makes a last resort loan is the ________ rate.
A) discount
B) short-term
C) reserve
D) federal funds

Question

Quizplus · Accepted Answer

The interest rate that the Federal Reserve charges banks for short-term loans when they borrow from the Federal Reserve's discount window is known as the discount rate. This is a tool used by the Federal Reserve to help manage the supply of money in the economy.

The Interest Rate That the Fed Charges When It Makes