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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The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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