Author Question: The interest rate on loans made by banks in the market in which they lend and borrow reserves from ... (Read 77 times)

EY67 · **on:** Jun 30, 2018

The interest rate on loans made by banks in the market in which they lend and borrow reserves from each other for very short periods of time is known as the:
a. discount rate.
b. legal reserve rate.
c. federal funds rate.
d. open market rate.
e. margin rate.

Question 2

The federal funds rate is the interest rate charged by:
a. banks for loans to other banks.
b. the Fed for overnight loans.
c. the Fed for borrowed reserves.
d. the federal government on loans to member banks.