The National Bank of Kazakhstan charges a discount interest rate on emergency loans to commercial banks. At one time, the National Bank set this interest rate beneath the base interest rate, which is the benchmark interest rate in Kazakhstan’s economy. But the National Bank now sets the discount rate equal to the base rate. Why might this have been prudent?
The National Bank of Kazakhstan charges a discount interest rate on emergency loans to commercial banks. At one time, the National Bank set this interest rate beneath the base interest rate, which is the benchmark interest rate in Kazakhstan’s economy. But the National Bank now sets the discount rate equal to the base rate. Why might this have been prudent?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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The National Bank of Kazakhstan charges a discount interest rate on emergency loans to commercial banks. At one time, the National Bank set this interest rate beneath the base interest rate, which is the benchmark interest rate in Kazakhstan’s economy. But the National Bank now sets the discount rate equal to the base rate. Why might this have been prudent?
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