Since the late 1970s,the Federal Discount Rate has generally been below the Prime Interest Rate by a few percentage points.

Question

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This statement is true. The Federal Discount Rate is the interest rate at which banks can borrow money directly from the Federal Reserve, while the Prime Interest Rate is the rate that commercial banks charge their most creditworthy customers. Typically, the Federal Discount Rate is set lower than the Prime Interest Rate to encourage banks to borrow from the Federal Reserve and stimulate the economy.

Since the Late 1970s,the Federal Discount Rate Has Generally Been