Management of Banking and Financial Services, 4th Edition by Pearson

monetary policy—implications for bank management n 59

the Federal Reserve at times uses the term ‘discount rate’ to mean the primary credit rate.) The discount rate on

secondary credit is above the rate on primary credit. The discount rate for seasonal credit is an average of selected

market rates. Discount rates are established by each Reserve Bank’s board of directors, subject to the review and

determination of the Board of Governors of the Federal Reserve System. The discount rates for the three lending

programs are, in most cases, the same across all Reserve Banks.

The current rates (beginning February 19, 2010) are 0.75 per cent for primary ...