The lowest interest rate charged by a bank for a short-term loan is called the discount rate.

Name: The lowest interest rate charged by a bank for a short-term loan is called the discount rate.
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The lowest interest rate charged by a bank for a short-term loan is typically referred to as the "prime rate." The "discount rate" is the interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve Bank's lending facility.

The Lowest Interest Rate Charged by a Bank for a Short-Term