The discount rate refers to which tool of monetary policy?

2 answers:

4 0

The federal discount rate is the interest rate the Federal Reserve charges banks to borrow funds from a Federal Reserve bank. The Fed discount rate is set by the Fed's board of governors, and can be adjusted up or down as a tool of monetary policy.

Valentin [98]3 years ago

3 0

Answer:

The federal discount rate is the interest rate the Federal Reserve (Fed) charges banks to borrow funds from a Federal Reserve bank. The Fed discount rate is set by the Fed's board of governors, and can be adjusted up or down as a tool of monetary policy.

Explanation:

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