The Federal Funds Rate Is the Interest Rate That

question 14

Multiple Choice

The federal funds rate is the interest rate that

• A)banks charge their best corporate customers
• B)banks have to pay when they get a loan from the Fed
• C)banks have to pay when they get a loan from another bank
• D)banks receive from the Fed for the reserves they hold as deposits at the Fed
• E)the federal government pays on its three-month Treasury bills

---

Definitions:

True Proposition

A statement that accurately describes a fact or situation, aligning with reality.

Subject Class

A group or category that shares certain characteristics, forming the subject of logical or philosophical analysis.

Quantity

The amount, number, or extent of something, often measurable.

Quality

A characteristic or property that distinguishes an object, material, or service, determining its nature and significance.