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The _____ Rate Is the Rate at Which Banks Charge

Question 94

Multiple Choice

The _____ rate is the rate at which banks charge each other for overnight loans, while the _____ rate is the rate at which regional Federal Reserve banks charge depository institutions for short-term loans.


A) bank prime; discount
B) discount; federal funds
C) bank prime; federal funds
D) federal funds; discount

Correct Answer:

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