Interest Rates Are Set By

question 167

Multiple Choice

Interest rates are set by:

• A)the forces of supply and demand in the market for debt.
• B)the Federal Reserve, the nation's central bank which regulates the banking industry.
• C)senior banking executives on the basis of the funds banks have available to lend.
• D)the president and his council of economic advisors.

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Definitions:

Heuristic

A simplified approach or method used to solve complex problems more quickly than conventional methods.

Guiding Principle

Fundamental norms, rules, or values that represent what is desirable and positive for a person, group, organization, or community, and help it in its decision making.

Solving Problems

The method of identifying answers to challenging or intricate problems.

Algorithm

A set of rules or procedures to be followed in calculations or problem-solving operations.