Finance, Forex and Investments

The intereset rate at which the Federal Reserve Banks lend to commercial banks, is called?

a. short-term rate. b. federal funds rate (this one?) c. prime rate d. dicount rate.

Public Comments

1. Firstly, the Fed Funds Rate is the interest rate at which private depository institutions lend balances. Secondly, the Discount Rate is an interest rate a central bank charges depository institutions that borrow reserves from it. Thirdly, Prime Rate, or Prime Lending Rate, is a term applied in many countries to a reference interest rate used by banks Finally, short-time rates is about interpreters. All in all, the interest rate at which the Federal Reserve Banks lend to commercial banks is called with Federal Funds Rate
2. discount rate.. The asnwer just above me is incorrect fed is bank to bank prime is bank to customer. short term is nothing specific