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Discount rate ( interest rate that banks pay to borrow reserves from the Federal Reserve) is...

Discount rate ( interest rate that banks pay to borrow reserves from the Federal Reserve) is determined by

-Federal Reserve Board of Governors

-Federal Reserve banks

-commercial banks

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Answer #1

"A"

The discount rate is not a market set rate but it is proposed by the 12 governors of the Fed and approved by the Federal reserve boards of governor.

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