Which of the Following Statements Is FALSE

question 71

Multiple Choice

Which of the following statements is FALSE?

• A) The interest rates that banks offer on investments or charge on loans depend on the horizon of the investment or loan.
• B) The Federal Reserve determines very short-term interest rates through its influence on the federal funds rate.
• C) The interest rates that are quoted by banks and other financial institutions are nominal interest rates.
• D) Fundamentally, interest rates are determined by the Federal Reserve.