Investment
Kirk's Market Thoughts
» tjg911 - re "What is The Discount Rate?"
In response to re "What is The Discount Rate?" posted by Kirk:Thanks Kirk.
.
So let me guess here, the FOMC rate, the rate the Fed changes or leaves unchanged at their meetings, this rate is the rate the Fed charges Federal Reserve banks when they borrow? If the answer is no then what is the FOMC rate and who is charged it?
.
The discount rate is the rate commerical banks pay depending upon which of the 3 categories they fall into, that does seem clear.
.
Thanks for helping me and perhaps others to understand this.
.
Tom
-- posted by tjg911
Please follow the guidelines set forth in the Suite101 Posting Etiquette when adding to the discussion.