All Subjects
Light
AP Macroeconomics
The discount rate is the interest rate at which commercial banks can borrow funds directly from the Federal Reserve.
congrats on reading the definition of Discount Rate. now let's actually learn it.
Federal Funds Rate: The interest rate at which depository institutions lend balances to each other overnight.
Prime Rate: The interest rate that commercial banks charge their most creditworthy customers for short-term loans.
Monetary Policy: Actions taken by central banks, such as changing interest rates, to influence economic activity and control inflation.