Which of the Following Statements Is True

question 162

Multiple Choice

Which of the following statements is true?

• A)The Federal funds rate is higher than the prime interest rate.
• B)The prime interest rate is higher than the Federal funds rate.
• C)The Federal funds rate and the prime interest rate are often the same.
• D)The prime interest rate is often the same as the discount rate.

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Definitions:

Higher-income People

Individuals or households that earn a significantly above-average level of income compared to the general population.

Chapter 7 Bankruptcy

involves the liquidation of a debtor's non-exempt assets by a trustee to pay creditors, part of the U.S. Bankruptcy Code.

Chapter 13

refers to a part of the U.S. Bankruptcy Code that enables individuals with a regular income to develop a plan to repay all or part of their debts.

Chapter 7

A provision of the bankruptcy code that provides for "liquidation," whereby a debtor's assets are distributed to creditors.