Question

QUESTION 22 The interest rate the Fed charges other banks for loans is the ____ rate and the interest rate on over night loans from one bank to another is the _____ rate. federal funds, discount reverse repo; repo discount: federal funds All of the above QUESTION 23 _ is the difference between a firm's assets and its liabilities. Debt capital Equity capital Collateral An initial Public Offering

Answer 1

Ques 22). The Fed does establish a fixed rate, known as the discount rate, which is the interest rate that the Fed will lend to banks through the so-called discount window.

The fed funds rate is the interest rate at which commercial banks lend reserves to one another on an overnight basis.

So option C is correct.

Ques 23). Firm's assets - liabilities = equity capital

So option B is correct.