The interest rate charged by banks with excess reserves at a Federal Reserve Bank to banks needing overnight loans to meet reserve requirements is called the

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The interest rate charged by banks with excess reserves at a Federal Reserve Bank to banks needing overnight loans to meet reserve requirements is called the federal funds rate. The prime rate is the interest rate that commercial banks charge their most creditworthy customers, the discount rate is the rate at which member banks can borrow short-term funds directly from a Federal Reserve Bank, and the call money rate is the rate at which broker-dealers can borrow funds from banks to finance margin loans to their clients.

The Interest Rate Charged by Banks with Excess Reserves at a Federal