The discount rate is the interest rate that:
a. banks charge on large loans
b. banks charge on loans to other banks.
c. the Fed charges on loans to branches of the U.S. government.
d. the Fed charges on loans to depository institutions.
e. the Fed charges on loans to the public.
d
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Banks who held mortgage-backed securities "took a bath" during the financial crisis of 2007-2009 due to:
A) rising yields in secondary markets which led to a decline in the price of mortgage-backed securities. B) falling yields in secondary markets which led to a decline in the price of mortgage-backed securities. C) their inability to issue new mortgages. D) more rapid pre-payment of mortgages.
Regulation that is based upon the cost of providing the good or service is known as
A) rate-of-return regulation. B) cost-of-service regulation. C) social regulation. D) deregulation.