Which of the following is an interest rate that the Fed has targeted in the last several years?
A) the prime rate
B) the discount rate
C) the government bond rate
D) the federal funds rate

Question

Quizplus · Accepted Answer

The Federal Reserve has targeted the federal funds rate in the last several years as a means of influencing economic growth and inflation. The prime rate is set by individual banks as a benchmark for lending to customers with higher creditworthiness. The discount rate is the rate at which banks can borrow from the Federal Reserve, but is not typically used as a policy tool. The government bond rate refers to the interest rate paid on U.S. government debt, and while the Fed may influence it indirectly, it is not a direct target.

Which of the Following Is an Interest Rate That the Fed