Question : The intereset rate at which the Federal Reserve Banks lend to commercial banks, is called?
a. short-term rate.
b. federal funds rate (this one?)
c. prime rate
d. dicount rate.
commercial lending rates

Best answer:

Answer by Burak G
Firstly, the Fed Funds Rate is the interest rate at which private depository institutions lend balances.
Secondly, the Discount Rate is an interest rate a central bank charges depository institutions that borrow reserves from it.
Thirdly, Prime Rate, or Prime Lending Rate, is a term applied in many countries to a reference interest rate used by banks
Finally, short-time rates is about interpreters.
All in all, the interest rate at which the Federal Reserve Banks lend to commercial banks is called with Federal Funds Rate