Commercial banks can borrow reserves directly from the Fed at the
A) prime interest rate.
B) federal funds rate.
C) discount rate.
D) real interest rate.

Question

Quizplus · Accepted Answer

Commercial banks can borrow reserves directly from the Fed at the discount rate, which is set by the Federal Reserve and is typically higher than the federal funds rate and the prime interest rate.

Commercial Banks Can Borrow Reserves Directly from the Fed at the