The interest rate that a bank pays to borrow another bank's excess reserves is called the:
A) discount rate.
B) federal funds rate.
C) savings account rate rate.
D) monetary loan rate.

Name: The interest rate that a bank pays to borrow another bank's excess reserves is called the: A) discount rate. B) federal funds rate. C) savings account rate rate. D) monetary loan rate.
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Question

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The federal funds rate is the interest rate at which banks lend excess reserves to each other overnight.

The Interest Rate That a Bank Pays to Borrow Another