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Grace [21]
3 years ago
11

The discount rate is the rate of interest at which: Question 12 options: 1) Federal Reserve Banks lend to commercial banks. 2) s

avings and loan associations lend to some builders. 3) Federal Reserve Banks lend to large corporations. 4) commercial banks lend to large corporations
Business
2 answers:
Tcecarenko [31]3 years ago
6 0

Answer:

The correct answer is number (1): Federal Reserve Banks lend to commercial banks.

Explanation:

The Discount Rate is the interest rate a central bank charges to private banks on short-term loans. Banks also borrow each other for short-term needs, with central banks such as the U.S. Federal Reserve (Fed) usually operating as a last-resort lender. As a consequence, it tends to have its discount rate somewhere above that which is charged by private banks.

stepan [7]3 years ago
5 0

Answer:

1) Federal Reserve Banks lend to commercial banks.

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