Next month, Bigbux Bank plans to increase the amount of new loans it makes. As a member bank of the Federal Reserve, Commerce can borrow from the Fed. Bigbux will charge the customer an interest amount greater than the discount rate.

Question

Quizplus · Accepted Answer

Federal Reserve member banks borrow money from the Federal Reserve Bank. The discount rate is the rate of interest the Fed charges when it loans funds to member banks.

Next Month, Bigbux Bank Plans to Increase the Amount of New