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The interest rate the central bank charges its member banks is the:
ADispatch rate
BDividend rate
CDiscount rate
DDiscovery rate
Answer & Solution
Correct answer: C. Discount rate
1. Banks pay it when they borrow from the centre.
2. Raising it makes credit dearer.
3. It is the discount rate.
_Source: OpenStax Introduction to Business, Chapter 15, Understanding Money and Financial Institutions._
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