The _________ rate is the interest rate banks borrow and lend overnight funds to each other in the overnight market.
A) call money
B) overnight
C) discount
D) prime
E) LIBOR

Question

Quizplus · Accepted Answer

The overnight rate is the interest rate at which banks lend and borrow funds with each other in the overnight market. It is determined by supply and demand for funds and can have an impact on other interest rates in the economy.

The _________ Rate Is the Interest Rate Banks Borrow and Lend