Which of the Following Is an Interest Rate That Is

question 110

Multiple Choice

Which of the following is an interest rate that is set directly by the Fed?

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

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Definitions:

Principal

The original sum of money borrowed in a loan or the initial amount of investment, excluding any interest or dividends.

Issue Price

The price at which new shares, bonds, or other securities are offered to the public or institutional investors for the first time.

Future Value

The value of a current asset at a specified date in the future based on an assumed rate of growth over time.

Contract Rate

The agreed-upon price or interest rate outlined in a contract for services or loans.