The federal funds rate is the interest rate on short-term loans made by:
A. the Federal Reserve to commercial banks.
B. commercial banks to other commercial banks.
C. the federal government to commercial banks.
D. the Federal Reserve to the federal government.
Answer: B
You might also like to view...
An economy that contains both perfect and imperfect competition and both regulated and non regulated industries is known as a
a. traditional economy. b. mixed economy. c. market economy. d. conglomerate economy.
The concavity or bowed-out shape of the production possibilities frontier is the result of
a. the law of downward-sloping demand. b. the law of upward-sloping demand. c. the principle of increasing cost. d. complementarity in consumption.
Which of the following relationships is correct?
a. GDP = GNP + Net foreign income b. GNP = GDP + Net foreign income c. GDP = Consumption + Net foreign income d. GDP = GNP + Balance of payments e. GDP = GNP adjusted for the foreign exchange rate
When the price of a financial asset ________ its interest rate will ________
A) rises; rise B) falls; fall C) falls; rise D) rises; remain the same