Notes on the Money Market and LM Curve – Eco 3202 – Fall ...
The discount rate is the interest rate that banks pay on this type of collateralized loan. On a daily average basis in September 2004, borrowing at the discount window averaged only $335 million a day, a tiny fraction of the $360 billion daily average for interbank loans during that month. ... 1A bank’s reserve requirement is determined by a ... ................
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