The interest percent charged by the Fed on loans to depository institutions is knows as the

A) discount rate.
B) prime rate.
C) federal funds rate.
D) commercial paper rate.
E) CD rate.

Discount Rate

The interest rate charged by central banks on loans they give to commercial banks and other financial institutions.

Fed

The Federal Reserve System, which is the central banking system of the United States, responsible for monetary policy.

Loans

Money borrowed that is expected to be paid back with interest.