The interest rate the federal reserve charges on loans it makes to commercial banks is called the:

The discount rate is the interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve Bank's lending facility--the discount window. :)

Answer Link

monikachinwaal55 monikachinwaal55 · Answer 2 · 2022-05-23T12:32:44+02:00

The interest rate is charged by the Federal Reserve Bank on the loans taken the commercial bank is called the discount rate.

What is the discount rate and how it is charged?

The discount rate is the interest rate that is charged by the Federal Reserve Banks on the short term loans taken by the commercial bank.

The discount rate can be calculated by two formula that are the weighted average cost of capital (WACC) and adjusted present value (APV).

Discount rate helps to determine the present value of future cash flows.

Learn more about the discount rate here:-

https://brainly.com/question/13660799

#SPJ2