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What is the discount rate?(1 point)

the discount rate is the interest rate at which the federal reserve charges to financial institutions on loans issued at the discount window.

the discount rate is interchangeable with prime rate, the interest rate at which financial institutions charge to its least-risky, or best, customers.

the discount rate is a misnomer, as it is the interest rate at which financial institutions charge to the riskiest of borrowers.

the discount rate is the interest rate banks charge each other for overnight and short-term lending.

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chilljain33

Discount rate is set by the Federal Reserve for charging to other financial institutions.

What has the power to determine the discount rate?

The rate of interest which is charged by the Federal Reserve to banks and other such financial institutions to meet their short-term monetary requirements is known as the discount rate.

The Federal Reserve has the sole authority to determine the rate of interest for giving such loans on discounting of the bills of exchange.

Hence, option A holds true regarding discount rate.

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