The interest rate that the Fed charges banks that borrow reserves from it is the
A)federal funds rate.
B)discount rate.
C)reserve requirement.
D)prime rate.

Name: The interest rate that the Fed charges banks that borrow reserves from it is the A)federal funds rate. B)discount rate. C)reserve requirement. D)prime rate.
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Question

Quizplus · Accepted Answer

The Fed charges banks that borrow reserves from it the discount rate. This is the interest rate at which banks can borrow directly from the Federal Reserve.

The Interest Rate That the Fed Charges Banks That Borrow