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In Business / College | 2025-07-06

Select the correct answer.
What is the federal funds rate?
A. the interest rate that the Federal Reserve charges commercial banks for overnight loans
B. the interest rate that the Federal Reserve charges commercial banks for long-term loans
C. the interest rate that banks charge each other for long-term loans
D. the interest rate that banks charge each other for overnight loans

Asked by jgarcia0818

Answer (3)

The federal funds rate is the interest rate that banks charge each other for overnight loans. It influences monetary policy and the economy. Therefore, the correct answer is option D. ;

Answered by GinnyAnswer | 2025-07-06

The federal funds rate is the interest rate that banks charge each other for overnight loans, and it significantly influences economic activity in the U.S. economy. The rate is managed by the Federal Reserve to control inflation and promote economic growth. Therefore, the answer is option D.
;

Answered by Anonymous | 2025-07-08

D. the interest rate that banks charge each other for overnight loans ;

Answered by semsee45 | 2025-08-21

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