Define the Federal Reserve discount rate. What is the current Federal Reserve discount rate?
Overnight Interest Rate:
Overnight interest rate is the interest rate on overnight loans, which are borrowing for the duration of one day. The overnight rate is one of the policy target rates for the Bank of Canada.
Answer and Explanation:
The Federal Reserve discount rate is the interest rate the Federal Reserve charges on loans commercial banks and other financial institutions take from the Federal Reserve. In simple terms, the discount rate is the cost of borrowing from the Federal reserve. As of right now, the Federal Reserve discount rate is 0.75%.
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fromChapter 13 / Lesson 18