Which of the following interest rates is usually below other money market rates?
A) Discount rate
B) Prime rate
C) Federal funds rate
D) Treasury note rate

Question

Quizplus · Accepted Answer

The discount rate, set by central banks, is typically lower than other money market rates because it is the interest rate charged to commercial banks for borrowing reserves from the central bank, serving as a benchmark for other rates.

Which of the Following Interest Rates Is Usually Below Other