The Interest Rate the Federal Reserve Charges a Bank When

question 170

Multiple Choice

The interest rate the Federal Reserve charges a bank when it borrows reserves from the Fed is called the

• A)market interest rate.
• B)federal funds rate.
• C)discount rate.
• D)prime rate.
• E)borrowing rate.

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Definitions:

Large Dividends

Significant payments made by a corporation to its shareholders, usually derived from the company's profits.

Small Dividends

Refers to dividend payments that are relatively small in amount, typically paid by companies with modest profits or those adopting conservative dividend policies.

Investors

Individuals or organizations that allocate capital with the expectation of receiving financial returns.

Stock Dividend

A payment made to shareholders in the form of additional shares rather than cash.