The discount rate is which interest rate?

1. The discount rate is the interest rate a central bank charges its member banks. 2. It is therefore a cost of funds for a commercial bank, not a price paid by an ordinary customer. 3. Changes in it usually produce changes in the interest rate banks then charge their own customers. 4. The rate a bank charges its borrowers is the lending rate, which sits above the discount rate. _Source: OpenStax Introduction to Business (CC BY 4.0), Ch 15 "Understanding Money and Financial Institutions", section 15.2 The Federal Reserve System_