Credit (Risk) Analyst Question: Download Credit (Risk) Analyst PDF
Explain what is the 'Overnight Rate'?
Answer:
The interest rate at which a depository institution lends funds to another depository institution (short-term), or the interest rate the central bank charges a financial institution to borrow money overnight. The overnight rate is the lowest available interest rate, and as such, it is only available to the most creditworthy institutions.
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