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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: Group of answer choices
A. prime rate.
B. federal funds rate.
C. Treasury bill rate.
D. discount rate.

Respuesta :

Answer:

D. discount rate.

Explanation:

  • There are two different definitions for the discount rate. It refers to commercial banks and other institutions for loans taken from the Federal Reserve Bank through the discount window loan process.
  • Another definition of interest rate discount is the one used in discounted cash flow analysis to determine the present value of future cash flows.

so correct option is D. discount rate.

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