The refinancing rate is ?
Correct answer: D. The interest rates the European Central Bank charges on loans to banks
- A. The interest rate at Which commercial banks lend to and borrow from each other
- B. The interest rate the European Central Bank pays on reserves
- C. The interest rates the public pays when borrowing from banks
- D. The interest rates the European Central Bank charges on loans to banks
- E. He interests rate banks pay on the public's deposits
Explanation
The refinancing rate is the central bank’s lending rate on loans to commercial banks, known in different systems by names such as the discount rate or repo-related lending rate. It is not the rate banks charge ordinary borrowers or pay on deposits.
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