The lower the discount rate relative to the federal funds rate,the more likely a commercial bank will borrow from

Name: The lower the discount rate relative to the federal funds rate,the more likely a commercial bank will borrow from
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A lower discount rate means that borrowing from the Fed is cheaper than borrowing from another commercial bank, which would likely have a higher interest rate. Therefore, commercial banks would be more likely to borrow from the Fed instead of another commercial bank.

The Lower the Discount Rate Relative to the Federal Funds