The interest rate on secondary credit is set 50 basis points above the primary credit rate.
What is the primary credit rate?
The "Primary Credit" program serves as the main check valve to make sure that the banking sector has enough liquidity.
What is the secondary credit rate?
Depository institutions can apply for secondary credit if they are not qualified for primary credit. It is extended at a rate that is greater than the prime credit rate on a very short-term basis, usually overnight.
What is the interest rate the Fed charges banks?
The Federal Reserve's benchmark interest rate currently sits in the 0.25 to 0.5 percent target range, but as authorities work to curb inflation, they expect it to rise even further in 2022. The fed funds rate would reach its highest level since 2008 if the Fed raises rates by an additional 2.5 percentage points, as predicted by investors.
Learn more about credit rate: https://brainly.com/question/25844483
#SPJ4
