The interest-rate measure often quoted on short-term loans and money market securities such as U.S.Treasury bills is the
A)bank discount rate.
B)yield to maturity.
C)annual percentage rate.
D)net interest margin.
E)None of the options is correct.

Question

Quizplus · Accepted Answer

The bank discount rate is commonly cited on short-term loans and money market securities like U.S. Treasury bills. It measures the interest rate that the Federal Reserve or other central bank charges to loan money to financial institutions. This interest rate reflects the cost of borrowing money in the short term, and is used as a benchmark for determining other short-term interest rates.

The Interest-Rate Measure Often Quoted on Short-Term Loans and Money