Asked by
Wintilio Ortiz
on Nov 22, 2024
Verified
The central bank of Lithutia charges an interest rate of 2 percent from the country's commercial banks to borrow money. In this scenario, the interest rate is called the _____.
A) premium rate
B) discount rate
C) exchange rate
D) tax rate
Discount Rate
The interest rate a central bank charges commercial banks to borrow money.
Premium Rate
Refers to the higher price or rate charged for goods or services perceived to be of higher quality, or in the case of telecommunications, services that offer added value beyond the basic rate.
Exchange Rate
The value at which one currency can be exchanged for another, affecting international trade and economics.
- Understand fiscal and monetary policies and their application in economic scenarios.
Verified Answer
KF
Learning Objectives
- Understand fiscal and monetary policies and their application in economic scenarios.