The Discount Rate

What happens when a bank out lends its reserves? Sal answers this question in a video about the discount rate, explaining that it is for the "lender of last resort" and outlining possible circumstances surrounding the need for such a rate.

Additional Tags

discount rates, offsetting liability, federal reserve rate, target rate, repurchased transactions, math

Show More Show Less

Resource Details

Grade

9th - Higher Ed

Subjects

Math

4 more...

Resource Type

Instructional Videos

Media Length

13:22

Audiences

For Teacher Use

1 more...

Instructional Strategy

Flipped Classroom

Accessibility

Closed Captions

Usage Permissions

Creative Commons

BY-NC-SA: 3.0