Which of the Following Statements Is FALSE

question 17

Multiple Choice

Which of the following statements is FALSE?

• A)The interest rates that banks offer on investments or charge on loans depends on the horizon of the investment or loan.
• B)The Federal Reserve determines very short-term interest rates through its influence on the federal funds rate.
• C)The interest rates that are quoted by banks and other financial institutions are nominal interest rates.
• D)Fundamentally,interest rates are determined by the Federal Reserve.

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