The interest rate the government charges when it loans money to private banks is known as the __________ rate.

Name: The interest rate the government charges when it loans money to private banks is known as the __________ rate.
Brand: Quizplus
Rating: 4.8 (45 reviews)

Question

Quizplus · Accepted Answer

The interest rate charged by the central bank to private banks when they borrow money is called the discount rate. This is because the central bank will discount the amount of money the private bank owes by the interest rate charged.

The Interest Rate the Government Charges When It Loans Money