The _____ Rate Is the Interest Rates Charged When a Bank

question 14

Multiple Choice

The _____ rate is the interest rates charged when a bank lends reserves to another bank.

• A) federal funds
• B) discount
• C) prime
• D) reserve rate

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Definitions:

Supply Function

A mathematical function that illustrates the quantity of a good that producers are willing and able to sell at different price levels.

Demand Function

A mathematical expression showing the relationship between the quantity demanded of a good and its price, along with other determinants of demand like income.

Quantity Tax

A tax levied on the quantity of goods sold, not on the value of sales.

Supply Schedule

A table or graph showing the quantity of a good that producers are willing and able to supply at different prices.