Business, 25.04.2020 03:43 ReaLily

The discount rate is the: interest rate at which banks can borrow reserves from other banks. interest rate at which banks can borrow reserves from the Federal Reserve. lowest interest rate that banks can charge for loans to their most creditworthy customers. lowest interest rate that banks can charge for lending reserves to other banks or financial institutions. b. If the Fed were to decrease the discount rate, banks will borrow: fewer reserves, causing a decrease in lending and the money supply. more reserves, causing a decrease in lending and the money supply. more reserves, causing an increase in lending and the money supply. fewer reserves, causing an increase in lending and the money supply.

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The discount rate is the: interest rate at which banks can borrow reserves from other banks. interes...