If the federal funds rate is 6 percent and the discount rate is 5 1 percent, to whom will a bank be more likely to go for a loan, another bank or the Fed Explain your answer ...

Ceteris paribus the bank will probably borrow from another b ...

If the federal funds rate is 6 percent and the discount rate is 5.1 percent, to whom

Question:

If the federal funds rate is 6 percent and the is 5.1 percent, to whom will a bank be more likely to go for a loan, another bank or the Fed? Explain your answer.
Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...