The Interest Rate Charged by Banks with Excess Reserves at a Federal

question 30

Multiple Choice

The interest rate charged by banks with excess reserves at a Federal Reserve Bank to banks needing overnight loans to meet reserve requirements is called the

• A) prime rate.
• B) discount rate.
• C) federal funds rate.
• D) call money rate.
• E) money market rate.

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Definitions:

Marginal Product

The additional output generated by employing one more unit of a particular input, keeping other inputs constant.

Number of Workers

The total count of individuals employed within a firm, an industry, or the economy to perform various tasks and services.

Labor

It refers to the effort, skills, or work performed by workers for wages.

Maximum Total Output

The highest quantity of production that a company can achieve with its current resources and technology.