What is the 'discount rate' in banking?

Practice Questions

Q1
What is the 'discount rate' in banking?
  1. The interest rate charged to commercial banks for loans from the central bank
  2. The rate at which consumers can borrow money
  3. The rate of return on savings accounts
  4. The interest rate on government bonds

Questions & Step-by-Step Solutions

What is the 'discount rate' in banking?
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