What is the name of the fed target rate

Reference no: EM131023055

In 2013, one article in the Wall Street Journal noted that: "The Fed's Board of Governors kept the discount rate unchanged at 0.75%," while another article predicted that: "The Fed can be expected to state again that the target rate won't change until mid-2015."

a. What is the name of the Fed's "target rate"?

b. Briefly explain who borrows money and who lends money at this "target interest rate."

c. What is the discount rate, and how is it different from the "target rate"?

Reference no: EM131023055

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