The interest rate that commercial banks charge each other for very short-term loans is called the:

A. federal funds rate.
B. prime rate.
C. bank loan rate.
D. Federal Reserve discount rate.


Answer: A

Economics

You might also like to view...

A residual claimant with supervisory powers resolves the difficulties independent workers have in arriving at choices that affect the entire group

Indicate whether the statement is true or false

Economics

Which of the following is most likely a topic of discussion in macroeconomics?

a. an increase in the price of a pizza b. a decrease in the production of DVD players by a consumer electronics company c. an increase in the wage rate paid to automobile workers d. a decrease in the unemployment rate

Economics

Countries such as Brazil, India, and Moldova-well-known sources of organ donors-have banned buying and selling organs. This legal action comes at the risk of driving the trade underground. What idea from Chapter 1 of the text does this story best illustrate?

A. Economic forces always operate despite legal forces. B. Legal and social forces can eliminate economic forces. C. Marginal revenue should equal marginal cost. D. The invisible hand is not always invisible.

Economics

Because of the ________ of vaccinations, economic efficiency would be improved if more people were vaccinated

A) negative externality B) positive externality C) moral hazard D) adverse selection

Economics