The Federal Reserve banks make loans to member banks at a special interest rate called the discount rate.

Name: The Federal Reserve banks make loans to member banks at a special interest rate called the discount rate.
Brand: Quizplus
Rating: 4.9 (61 reviews)

Question

Quizplus · Accepted Answer

This is true. The Federal Reserve banks offer loans to member banks at the discount rate, which is typically lower than the federal funds rate. This is one of the tools used by the Federal Reserve to control the money supply and influence economic activity.

The Federal Reserve Banks Make Loans to Member Banks at a Special