The ________ is the interest rate commercial banks pay to the Fed; the ________ is the interest rate commercial banks charge each other for short-term loans.

Question

Quizplus · Accepted Answer

The interest rate that the Fed charges commercial banks that borrow reserves is called the discount rate. The "federal funds rate" is the interest rate that commercial banks charge each other for very short-term (usually overnight)loans.

The ________ Is the Interest Rate Commercial Banks Pay to the Fed;