The Interest Rate Charged on Loans from the Federal Reserve

question 12

Multiple Choice

The interest rate charged on loans from the Federal Reserve to banks is commonly referred to as the

• A) federal funds rate.
• B) primary credit lending rate.
• C) repo rate
• D) none of the above

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Definitions:

Price Lowered

A decrease in the cost of a good or service to consumers.

Price Elasticity

A measure of the responsiveness of quantity demanded or supplied of a good to a change in its price.

Quantity Demanded

The quantity of a good that consumers are willing and able to purchase at a given price over a specified period of time.

CD Players

Devices used for playing audio CDs that were a popular technology for music playback before being gradually replaced by digital music players.