Author Question: The federal funds rate is the interest rate that: a. the government charges banks to borrow money ... (Read 123 times)

vicotolentino · **on:** Jun 30, 2018

The federal funds rate is the interest rate that:
a. the government charges banks to borrow money
b. the Fed charges banks to borrow money
c. the federal government pays to borrow money
d. federally chartered banks charge their customers for commercial loans.
e. banks charge other banks for short-term loans.

Question 2

The interest rate that banks charge other banks for short-term loans is the:
a. discount rate.
b. prime rate.
c. treasury rate.
d. federal funds rate.
e. interbank rate.