If bank borrows money from another bank rather than from the fed, the interest rate charged by the second bank is called the

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04-07-2022
Business

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If bank borrows money from another bank rather than from the fed, the interest rate charged by the second bank is called the

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dubeyshailja64 dubeyshailja64 · Answer 1 · 2022-07-08T05:00:01-04:00

The bank borrows money from another bank rather than from the fed, the interest rate charged by the second bank is called the interbank rate.

What is Bank?

Bank refers to financial institutions that help people to borrow funds on credit and deposit and withdraw cash for use. These allow savings among people and helps in protecting the securities.

The interest rate applied to short-term loans made by banks to one another is known as the interbank rate. In the interbank lending market, banks borrow and lend money to one another in order to effectively manage stability.

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What is Bank?

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