The interest rate charged by a bank that loans excess reserves to another bank i

Question

The interest rate charged by a bank that loans excess reserves to another bank is called the margin rate. discount rate. bank rate. federal funds rate. The rate of interest that the Federal Reserve charges on loans to member banks is the open market rate. federal funds rate. discount rate. reserve lending rate. An increase in the discount rate increases reserve holdings. reduces the amount of lending by commercial banks, lowers the cost of borrowing from the Fed. causes a decrease in the federal funds rate.

Explanation / Answer

20) federal fund rates

21) discount rate

22) increases reserve holding

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