Which of the Following Statements Is Correct

question 168

Multiple Choice

Which of the following statements is correct?

• A)The Federal funds rate is derived based on the prime rate.
• B)The Federal funds rate is the rate banks charge their most creditworthy customers.
• C)The discount rate is the rate banks charge one another on overnight loans.
• D)The prime rate involves longer, more risky loans than the Federal funds rate.

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Definitions:

Truth Values

The valuation of a statement as either true or false in logic.

Short Form Truth Table

A method of using truth tables that focuses only on the relevant combinations of truth values that could affect the outcome.

Atomic Sentences

Simple statements that contain no logical connectives or quantifiers, representing the most basic elements of logic.

Truth Values

The classification of propositions or statements according to their truthfulness, typically as true or false.