The Interest Rate That the Fed Charges Banks That Borrow

question 50

Multiple Choice

The interest rate that the Fed charges banks that borrow reserves from it is the

• A)federal funds rate.
• B)discount rate.
• C)reserve requirement.
• D)prime rate.

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Definitions:

Habituation

The process by which an individual becomes accustomed to a stimulus after repeated exposure, leading to a decrease in response.

Visual Attention

The mental process of focusing attention on a specific element of the surroundings while excluding other aspects.

Responsiveness

The quality or state of reacting quickly and positively.

Teratogens

Agents, such as chemicals and viruses, that can reach the embryo or fetus during prenatal development and cause harm.