The Interest Rate Charged by Banks with Excess Reserves at a Federal

question 30

Multiple Choice

The interest rate charged by banks with excess reserves at a Federal Reserve Bank to banks needing overnight loans to meet reserve requirements is called the

• A) prime rate.
• B) discount rate.
• C) federal funds rate.
• D) call money rate.
• E) money market rate.

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Definitions:

Slave Trade

The historical trading of enslaved humans, particularly from Africa to the Americas, as part of a triangular trading system involving manufactured goods, slaves, and agricultural products.

Barbados

An island country in the Lesser Antilles of the West Indies, in the Caribbean region of North America, known for its rich history and vibrant culture.

Molasses

A thick, dark syrup produced during the refining of sugar cane or sugar beets into sugar.

Sugar Cane

Sugar cane is a tropical grass native to Southeast Asia, widely cultivated for its juice from which sugar is processed, playing a significant role in global sugar production.