The interest rate that banks charge each other for short-term loans is the
a. discount rate
b. prime rate
c. treasury rate
d. federal funds rate
e. interbank rate
D
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A fall in the rate of people's time preference in general tends to
A) increase interest rates. B) decrease interest rates. C) have no effect on interest rates. D) have no effect at all in the market for credit.
In the U.S., taxes on capital gains are computed using
a. nominal gains. This is one way by which higher inflation discourages saving. b. nominal gains. This is one way by which higher inflation encourages saving. c. real gains. This is one way by which higher inflation discourages saving. d. real gains. This is one way by which higher inflation encourages saving.
What is the difference between a business cycle and the day-to-day ups and downs of the market?
What will be an ideal response?
Acid rain is an example of a negative externality.
Answer the following statement true (T) or false (F)