The Interest Rate That the Fed Charges When It Lends

question 91

True/False

The interest rate that the Fed charges when it lends reserves to banks is called the federal funds rate.

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Definitions:

Decreasing Rate

Describes a situation where the rate at which something happens or is done reduces over time.

Increasing Rate

A situation where the magnitude or quantity of something grows at a pace that accelerates over a given period of time.

Slope

In mathematics and economics, the measure of the steepness or incline of a line, often representing the rate of change.

Y-axis

The Y-axis is the vertical line in a graph or chart, which, in coordinate geometry, usually represents the range of values for a dependent variable.