Discounting refers to the Fed's practice of

Name: Discounting refers to the Fed's practice of
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Discounting refers to the practice of the Federal Reserve lending reserves to private banks at the discount rate, which is set by the Fed and is usually higher than the federal funds rate. This allows banks to borrow funds from the Fed when they need additional reserves to meet their reserve requirements or to provide liquidity to their customers.

Discounting Refers to the Fed's Practice of