The interest rate that banks use as a reference point for interest rates on a wide range of loans to businesses and individuals is the _____.
Multiple Choice
discount rate
term auction rate
prime rate
real interest rate
Answer :prime rate
(Prime rate is an interest rate fixed by banks .it always used as reference point for various types of loans to business and individuals)
Prime interest rate is the interest rate that banks use as a reference point for interest rates on a wide range of loans to businesses and individuals.
The interest rate that banks use as a reference point for interest rates on a wide...
The federal funds rate is the interest rate that ____ charges _____ Multiple Choice banks; other banks the Fed, commercial banks banks; their best corporate customers banks; on federal student loans
The discount rate is the interest rate that a. banks charge one another for loans. b. banks charge the Fed for loans. c. the Fed charges banks for loans. d. the Fed charges Congress for loans.
Under ASC 840, a lessee must use which one of the following discount rates to value a capital lease? Multiple Choice Prime rate. Lower of the known implicit lease rate or lessee’s incremental borrowing rate. Lower of implicit lease rate or prime lending rate. Lessee’s incremental borrowing rate. A lessor mistakenly treated a direct financing lease as an operating lease. How does this mistake impact the following at the end of the first year of the lease term? Rent/Lease Revenue...
10. The discount rate and the federal funds rate The discount rate is the interest rate on loans that the Federal Reserve makes to banks. Banks occasionally borrow from the Federal Reserve when they find themselves short on reserves. A lower discount rate banks' incentives to borrow reserves from the Federal Reserve, thereby the quantity of reserves in the banking system and causing the money supply to The federal funds rate is the interest rate that banks charge one another...
answer these will rate after
If the Fed increases the discount rate, banks will face a higher cost of borrowing and will pass some of this cost onto customers in terms of higher interest rates. O it will be easier for banks to borrow the money needed to provide a higher volume of commercial loans. O it will then increase the required reserve ratio as well. O it will then decrease the required reserve ratio to offset any possible contractionary...
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
10. The discount rate and the federal funds rate The discount rate is the interest rate on loans that the Federal Reserve makes to banks. Banks occasionally borrow from the Federal Reserve when they find themselves short on reserves. A lower discount rate banks' incentives to borrow reserves from the Federal Reserve, thereby the quantity of reserves in the banking system and causing the money supply to The federal funds rate is the interest rate that banks charge one another...
10. The discount rate and the federal funds rate The discount rate is the interest rate on loans that the Federal Reserve makes to banks. Banks occasionally borrow from the Federal Reserve when they find themselves short on reserves. A lower discount rate banks' incentives to borrow reserves from the Federal Reserve, thereby the quantity of reserves in the banking system and causing the money supply to ipply to . The federal funds rate is the interest rate that banks...
9. The discount rate and the federal funds rate The discount rate is the interest rate on loans that the Federal Reserve makes to banks. Banks occasionally borrow from the Federal Reserve when they find themselves short on reserves. A lower spread between the discount rate and the federal funds rate decreases banks' incentives to borrow reserves from the Federal Reserve, thereby the quantity of reserves in the banking system and causing the money supply to The federal funds rate...
What’s the answer c is wrong
Question 8 Compete 0.00 points out of 10.00 The benchmark interest rate that banks use as a reference point for a variety of consumer and business loans in the Select one: a. Treasury bill rate b. discount rate c. prime iterest rate d. federal funds rate