The discount rate refers to:     A)  the rate of interest the Fed charges for loans to the government.   B)  the rate of interest the Fed charges for loans to individuals.   C)  the rate of interest the Fed charges for loans to banks.   D)  the lower price large institutions pay for government bonds.

MACROECONOMICS FOR TODAY
10th Edition
ISBN:9781337613057
Author:Tucker
Publisher:Tucker
Chapter16: Monetary Policy
Section: Chapter Questions
Problem 1SQ
icon
Related questions
Question

The discount rate refers to:

 
 

A) 

the rate of interest the Fed charges for loans to the government.

 

B) 

the rate of interest the Fed charges for loans to individuals.

 

C) 

the rate of interest the Fed charges for loans to banks.

 

D) 

the lower price large institutions pay for government bonds.

Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Bond
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
MACROECONOMICS FOR TODAY
MACROECONOMICS FOR TODAY
Economics
ISBN:
9781337613057
Author:
Tucker
Publisher:
CENGAGE L
Economics For Today
Economics For Today
Economics
ISBN:
9781337613040
Author:
Tucker
Publisher:
Cengage Learning
Survey Of Economics
Survey Of Economics
Economics
ISBN:
9781337111522
Author:
Tucker, Irvin B.
Publisher:
Cengage,
Economics Today and Tomorrow, Student Edition
Economics Today and Tomorrow, Student Edition
Economics
ISBN:
9780078747663
Author:
McGraw-Hill
Publisher:
Glencoe/McGraw-Hill School Pub Co
Economics:
Economics:
Economics
ISBN:
9781285859460
Author:
BOYES, William
Publisher:
Cengage Learning
Economics (MindTap Course List)
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning