The Bank of Dodge had several large withdrawals and its reserves have fallen below its required reserves. Other banks are unwilling to lend it money, so it has turned to the emergency lending division of the Federal Reserve for an overnight loan.
What is the name of the interest rate this bank will be charged for an overnight loan from the Federal Reserve?
Choose 1 answer:
(A) The discount rate
(B) The prime rate
(C) The Federal Funds rate
(D) The exchange rate
(E) The IOER (interest rate on excess reserves)
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