The discount rate is the interest ________.
A. rate at which commercial banks lend to the public
B. rate at which the central banks lend to the U.S. Treasury
C. rate at which the Federal Reserve Banks lend to commercial banks
D. yield on long-term government bonds
Answer: C
Economics
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If the nominal interest rate is 0% and the real interest rate is 2%, what is the inflation rate?
A) -2% B) 2% C) -4% D) 0%
Economics
An increase in real GDP can shift
A) money demand to the left and increase the equilibrium interest rate. B) money demand to the right and increase the equilibrium interest rate. C) money demand to the right and decrease the equilibrium interest rate. D) money demand to the left and decrease the equilibrium interest rate.
Economics