The ________ Rate Represents the Interest Rate Charged by the Fed

question 133

Multiple Choice

The ________ rate represents the interest rate charged by the Fed when loaning funds to member banks.

• A) discount
• B) prime
• C) federal funds
• D) reserve

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Definitions:

Nonprogrammed Decisions

Decisions made in response to unique, novel, or ill-structured situations that require creativity and judgment, as opposed to routine or standard procedures.

Routine Decisions

Decisions that are made frequently and with a relatively simple process because they involve situations that have occurred before and have predictable outcomes.

Established Procedure

A set method or protocol that has been officially adopted for conducting activities or accomplishing tasks.

Rational Model

A decision-making model that involves a structured and logical process to arrive at a decision.