The Discount Rate Refers to

The discount rate refers to

A) the penalty paid by risky bank borrowers;that is,the amount of interest they pay in excess of the prime rate.
B) the rate at which banks write off bad loans.
C) the rate at which assets lose their real value as a result of inflation.
D) the rate at which money loses its value as a result of inflation.
E) the rate of interest that the Fed charges on loans to commercial banks and thrift institutions.