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3 October, 01:36

Commercial banks can borrow reserves directly from the fed at the

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  1. 3 October, 01:53
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    The correct answer is discount rate.

    The discount rate is the interest rate that the member banks pay the US Federal Reserve to borrow money. Member banks often borrow money from them because they are required to maintain a minimum reserve amount. If they do not have the minimum reserve they borrow from the fed in order to achieve it.
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