The federal funds rate isThe federal funds rate is
A. The required reserve ratio that the federal reserve requires banks to maintain
B. The interest rate that banks charge for loans to its important commercial borrowers
C. The interest rate that banks charge each other for overnight loans
C. The interest rate that banks charge each other for overnight loans
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The interest rate on U.S. government securities is often called the
a. prime rate b. public discount c. riskless rate d. superior rate e. universal discount
Which of the following statements about cost curves is always true?
a. ATC decreases as output increases. b. AFC increases as output increases. c. AFC lies above AVC. d. ATC lies above AVC. e. MC lies below ATC.
The Federal Reserve banks accept deposits from individuals and banks.
a. true b. false
The presence of adverse selection in a market causes:
A. some transactions to fail to take place. B. market failure. C. a deadweight loss. D. All of these statements are true.