The ___________ rate represents the interest rate charged by the fed when loaning funds to member banks.

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23-06-2017
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The ___________ rate represents the interest rate charged by the fed when loaning funds to member banks.

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Erudite1 Erudite1 · Answer 1 · 2017-07-02T15:07:16+02:00

The DISCOUNT rate represents the interest rate charged by the fed when loaning funds to member banks. The discount rate is the minimum interest rate set by the United States Federal Reserve when loaning money to other banks. Discounting has to do with determination of the present value of a payment and the stream of payment that will be received in the future; it takes into account both the present and the future value of the payment.