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The _____ Rate Is the Interest Rate That Banks Pay

Question 15

Multiple Choice

The _____ rate is the interest rate that banks pay to borrow from the Federal Reserve, and the _____ rate is the interest rate that banks pay to borrow another bank's excess reserves.


A) discount; federal funds
B) federal funds; discount
C) open market; federal funds
D) discount; open market

Correct Answer:

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