The interest rate target emphasized in recent Federal Open Market Committee press releases is the

Question

Quizplus · Accepted Answer

The Federal Open Market Committee (FOMC) is responsible for setting monetary policy in the United States. The interest rate target emphasized in recent FOMC press releases is the federal funds rate, the rate at which depository institutions lend reserve balances to other depository institutions overnight on an uncollateralized basis. The FOMC sets a target range for the federal funds rate and adjusts it as necessary to achieve its dual mandate of maximum employment and stable prices. Therefore, the correct answer is C.

The Interest Rate Target Emphasized in Recent Federal Open Market