The Interest Rate on Primary Credit Extended by the Fed

question 72

Multiple Choice

The interest rate on primary credit extended by the Fed is:

• A)The average of the prime interest rate charged by the ten largest banks in the nation
• B)50 basis points below the target federal funds rate
• C)200 basis points above the target federal funds rate
• D)100 basis points above the target federal funds rate

---

Definitions:

Legal and Accounting Guidance

Professional advice and support provided in legal matters and financial accounting, essential for business compliance and management.

Jeffrey Sachs

An American economist known for his work on sustainable development, poverty alleviation, and as an advisor to governments on economic reforms.

Poverty-stricken Countries

Refers to nations with low levels of income and economic development, often characterized by insufficient access to basic necessities such as food, clean water, and healthcare.

Information Technology

The use of computers, storage, networking, and other physical devices, infrastructure, and processes to create, process, store, secure, and exchange all forms of electronic data.