The Short-Term Rate at Which Banks Lend to Each Other

question 31

Multiple Choice

The short-term rate at which banks lend to each other is called the ________.

• A)fed funds rate
• B)Federal Reserve rate
• C)discount rate
• D)federal loan rate
• E)reserve loan rate

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Definitions:

Income Statement

A financial statement that summarizes the revenues, costs, and expenses incurred during a specific period, usually a fiscal quarter or year.

Statement Of Retained Earnings

A financial statement that details changes in retained earnings, including net income and dividends, for a specific period.

Balance Sheet

A financial report detailing a company's financial status at a particular moment, presenting assets, liabilities, and shareholders' equity.

Cash Dividends

The issuing of cash dividends from earnings to shareholders by a corporation.