15. The discount rate is the interest rate that A. banks pay when they take a loan from another bank. B. consumers pay when they take loans to buy houses. C. banks pay when they take a loan from the Federal Reserve. D. consumers pay when they buy goods and services using a credit card.

The correct answer is C. The discount rate is the interest rate that banks pay when they take a loan from the Federal Reserve. The discount rate is a tool used by the Federal Reserve to influence monetary policy and is typically set higher than the federal funds rate to encourage banks to borrow from the Fed only when necessary.