Investments & Financial Planning

What is the federal reserve discount rate ?

Answer:

The Discount rate is the interest rate that the Federal Reserve charges a bank to borrow funds when a bank is temporarily short of funds. Collateral is necessary to borrow, and such borrowing is quite limited because the Federal reserve views it as a privilege to be used to meet short term liquidity needs, and not a device to increase earnings.
CPAdirectory
Answer Provided by: CPAdirectory

Share This Answer

Looking For More?

View all Investments & Financial Planning Questions

View More Questions