This is an interest rate that one commercial bank pays to another commercial bank

a. federal funds rate
b. prime rate
c. discount rate
d. US Mint rate


Ans: a. federal funds rate

Economics

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When a government defaults on its obligations, the event is called a

A) sovereign default. B) magisterial default. C) private default. D) sudden stop default. E) national default.

Economics

Lisa consumes only pizzas (P) and burritos (B). Her utility function is U = P0.5 B0.5. The price of per pizza is $10 and the price per burrito is $5. In equilibrium, Lisa consumes 4 pizzas

Using Lisa's utility function, calculate how many burritos she consumes.

Economics

The effect of a government surplus on the equilibrium level of GDP is substantially the same as:

A. a decrease in imports. B. an increase in saving. C. an increase in consumption. D. an increase in investment.

Economics

If investors showed less of a preference for investing in war-related companies, then it would be expected that the stock prices for those companies would:

A. Increase, and the rates of return would decrease relative to other companies B. Decrease, and the rates of return would increase relative to other companies C. Decrease, but the rates of return would stay the same relative to other companies D. Decrease, and the rates of return would decrease relative to other companies

Economics