In$2015,$ one article in the Wall Street Journal discussed the possibility of$$ "a September$$ quarter$-$point increase in the$$ Fed's range for overnight target$$ rates," while another article$$ noted, "the U$.$S$.$ central$$ bank's discount rate...has been set at$0\mathrm{.}75\%$ since February$2010."$

$$Sources: Justin$$ Lahart, "Jobs Give Fed Green$$ Light; Inflation Sets Speed$$ Limit," Wall Street

Journal$,$

August$7,2015$; and Ben$$ Leubsdorf, "Five Regional Fed Banks Asked to Raise Discount$$ Rate," Wall Street

Journal$,$

July$14,2015.$

What is the name of the$$ "target interest$$ rate" mentioned in this$$ article?

A$.$

The discount rate.

B$.$

The mortgage rate.

C$.$

The federal funds rate.

D$.$

The prime rate.

Part $2$

Who borrows money and who lends money at this$$ "target interest$$ rate"?

A$.$

Banks borrow and investors lend.

B$.$

The Fed borrows and banks lend.

C$.$

Banks borrow and banks lend.

D$.$

Banks borrow and the Fed lends.

Part $3$

What is the discount$$ rate?

A$.$

The discount rate is the rate at which auto loans and mortgages are made.

B$.$

The discount rate is the rate at which banks lend to their best customers.

C$.$

The discount rate is the rate at which banks lend to each other.

D$.$

The discount rate is the rate at which the Fed lends to banks.