The interest rate that commercial banks charge each other for borrowing and lending reserves is called
A. the discount rate.
B. the federal funds rate.
C. the price interest rate.
D. the commercial rate.
Answer: B
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For some products, purchases tend to decrease as the buyer's income increases. Such products are known as:
a. Normal goods b. Inferior goods c. Inverse goods d. Common goods
Per-capita output growth is the growth rate of output
A. of the entire economy. B. per worker in the economy. C. for capitalist economies. D. per person in the economy.
Refer to the graph shown. An effective price floor at $8 causes consumer surplus to:
A. fall from 62.50 to 10. B. increase from 120 to 130. C. fall from 320 to 80. D. increase from 10 to 62.50.
If the incremental capital output ratio is 3 and the ratio of saving to national income is 9%, according to the Harrod-Domar model the growth rate of income is
(a) zero. (b) 3%. (c) 6%. (d) 12%.