Which of the Following Statements Is True

question 162

Multiple Choice

Which of the following statements is true?

• A)The Federal funds rate is higher than the prime interest rate.
• B)The prime interest rate is higher than the Federal funds rate.
• C)The Federal funds rate and the prime interest rate are often the same.
• D)The prime interest rate is often the same as the discount rate.

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Definitions:

Domestic Price

The price of goods or services within a particular country, unaffected by international market variables.

Oil Barrels

Standardized units measuring volumes of crude oil and its products, with one barrel equivalent to 42 U.S. gallons.

Comparative Advantage

A concept in international trade that describes how a country can produce a particular good at a lower opportunity cost compared to other countries.

Candle Makers

Individuals or companies engaged in the craft or industrial process of producing candles.