The interest rate charged to banks to borrow from the federal reserve is the _____

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22-07-2022
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The interest rate charged to banks to borrow from the federal reserve is the _____

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anshumanaryan799 anshumanaryan799 · Answer 1 · 2022-07-31T10:28:08+02:00

The interest rate charged to banks to borrow from the federal reserve is the discount rate.

The discount rate is known as the interest rate charged by the Federal Reserve on loans to banks. The Federal Open Market Committee consists of the Board of Governors, the President of the Federal Reserve Bank of New York, and the Presidents of five other regional Federal Reserve Banks.

The federal Funds Rate is the rate banks charge each other for lending the Federal Reserve money overnight. A country's central bank uses it in addition to other tools to promote economic stability by increasing or decreasing borrowing costs

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