In an effort to address the troubled economy, ..."For the ninth time in just over a year, the Federal R is expected to cut interest rates, quite possibly its last reduction in this downturn." Rates have not this low "... since 2003, when the economy was growing at a snail's pace. "
HYPERLINK "http://www.csmonitor.com/" www.csmonitor.com, 10/28/20
The "interest rates" the Fed is cutting is the _ _.
A) reserve interest rate
B) nominal long- term interest rate
C) Federal Funds rate
D) real long- term interest rate

Question

Quizplus · Accepted Answer

The term "Federal R" in the sentence refers to the Federal Reserve, which has the power to set the Federal Funds rate - the interest rate at which banks lend reserve balances to each other overnight. This is the interest rate that the Fed is expected to cut for the ninth time in just over a year to address the troubled economy.

In an Effort to Address the Troubled Economy