Question

When one commercial bank borrows from another commercial bank, it pays the __________ rate, when the bank borrows from The Fed it pays the ____________ rate.

Question 6 options:
discount; federal funds
T-bill; discount
federal funds; discount
prime; federal funds
nominal; real

Answer 1

prime federal funds

Step-by-step explanation:

it pays the prime rate, when the bank borrows from the fed it pays the federal funds