The discount rate is the interest
A) rate at which the central banks lend to the U.S. Treasury.
B) rate at which the Federal Reserve Banks lend to commercial banks.
C) yield on long-term government bonds.
D) rate at which commercial banks lend to the public.

Question

Quizplus · Accepted Answer

The discount rate is the interest rate at which Federal Reserve Banks lend money to commercial banks, making it the best choice. The other options (A, C, and D) are not accurate definitions of the discount rate.

The Discount Rate Is the Interest