Question

The discount rate is the interest rate charged by:_______.

a. banks for overnight loans to other banks.
b. the Fed on loans of reserves to banks.
c. major banks to their best customers.
d. banks for loans of less than 24 hours.

Answer 1

B

Step-by-step explanation:

I believe it is the interest rate the federal reserve uses for loaning to banks. Its the minimal rate, also.