The interest rate used by the ECB that is analogous to the discount rate for the Federal Reserve is the
A) repo rate.
B) marginal lending rate.
C) federal funds rate.
D) none of the above.

Question

Quizplus · Accepted Answer

The marginal lending rate is the interest rate banks are charged for borrowing money from the European Central Bank overnight. It is analogous to the discount rate in the Federal Reserve system, which is the interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve Bank's lending facility.

The Interest Rate Used by the ECB That Is Analogous