Projecting that it might temporarily fall short of legally required reserves in the coming days, the Bank of Beano decides to borrow money from its regional Federal Reserve Bank. The interest rate on the loan is called the _____.

Respuesta :

Answer:

he interest rate on the loan is called the Discount Rate

Explanation:

Discount Rate - The discount rate relates to the interest rate paid on loans from the Federal Reserve Bank by business banks and other economic organizations through the discount window credit system.

And other definition of discount rate is  the discount rate relates to the rate of interest used during the Discounted Cash Flow (DCF) assessment to assess the current value of future revenues.