The Interest Rate That the Fed Charges When It Makes

question 138

Multiple Choice

The interest rate that the Fed charges when it makes a last resort loan is the ____________rate.

• A) discount
• B) federal funds
• C) reserve
• D) short-term

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Definitions:

Credit

An accounting entry that increases liabilities or equity or decreases an asset or expense. Opposite of a debit.

Ledger

A comprehensive collection of a company's accounts that records all financial transactions.

Income Statement

A financial document that reports a company's financial performance over a specific period, showing revenues, expenses, and net profit or loss.

Balance Sheet

A record presenting a business's holdings, obligations, and investor equity at a distinct time.