The discount rate is O the interest rate commercial banks charge each other for overnight loans. the interest rate the Federal Reserve charges member banks for loans from the Fe the interest rate consumers with good credit pay for bank loans. O the interest rate the Federal Reserve charges consumers for short term loans.

The discount rate is O the interest rate commercial banks charge each other for overnight loans. the interest rate the Federal Reserve charges member banks for loans from the Fe the interest rate consumers with good credit pay for bank loans. O the interest rate the Federal Reserve charges consumers for short term loans.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 24GI

See similar textbooks

Similar questions

Which interest rate is used on very short-term loans from one bank to another? A. Prime interest rate B. Commercial paper rate C. Treasury bill rate D. Fed funds rate
How does the interest paid on U.S. savings bonds compare to the savings account rates paid by banks and credit unions? A.The interest paid on U.S. savings bonds is higher than the savings account rates paid by banks and credit unions. B.The interest paid on U.S. savings bonds is lower than the savings account rates paid by banks and credit unions. C.The interest paid on U.S. savings bonds is twice as much as the savings account rates paid by banks and credit unions. D.The interest paid on U.S. savings bonds is the same as the savings account rates paid by banks and credit unions.
Which of the following interest rate is the rate charged by Federal Reserve Banks for their loans to the financial institutions? A) Federal Funds rate B) Prime rate C) Discount rate D) Treasury bond yield rate
what is the relationship between tne intrest rate and the bank prime loan rate
Which of the following would increase a bank’s Net Interest Margin, assuming all else stays the same? Choose Two an increase in the interest rate on its loans companies paying off some of their loans and the bank using the funds to purchase Treasury bonds customers switching a portion of their time deposits to demand deposits the bank issues additional equity and keeps the funds in cash an increase in the federal funds rate assuming the bank borrows more in the federal funds market than it lends
The discount rate is the rate that the O Fed charges member banks. Fed charges the Treasury for sales of securities. O Fed charges on government securities. O Treasury pays on savings bonds
The interest rate on loans is often linked to the charged by banks (this is the banks lowest lending rate) Secondary rate O Per annum. rate O Monthly rate Prime rate
Answer the following statements It is an average interest rate that banks offer in the financial market: a. effective rate b. Cetes c. CPP d. TIIE It is the payment for the use of someone else's money: a. simple interest b. interests c. amount d. interest rate
How do banks calculate the monthly payment on a loan?
The Federal Reserve has the power to fix the min rate of interest that commercial banks may pay on savings account. True False
The prime interest rate Multiple Choice is lower than the federal funds rate because it is the rate charged to a bank's most creditworthy customers. is influenced by Fed policies that change the money supply. usually is at the same as the federal funds rate. is a benchmark interest rate set directly by the Fed.
The refinancing rate is the interest rate a central bank like the Bank of England or European Central Bank (ECB) charges on short-term loans to the banking sector. Which of the following statements about the refinancing rate are true? Check all that apply. If the central bank wants to contract the monetary supply, it raises the refinancing rate. A lower refinancing rate discourages banks from borrowing reserves and making loans. O To meet their liquidity requirements, banks agree to repurchase assets put up as collateral for loans from the central bank. The refinancing rate is a primary barometer of central bank policy reported in the media.