Currently the Fed targets
A) both the monetary base and the federal funds rate simultaneously.
B) the exchange rate.
C) the price level.
D) the federal funds rate.

Question

Quizplus · Accepted Answer

The Fed currently targets the federal funds rate, which is the interest rate at which banks lend to each other overnight. The Fed adjusts the federal funds rate through its open market operations, such as buying and selling Treasury securities. The goal of targeting the federal funds rate is to influence borrowing and spending in the economy, which can ultimately impact inflation and economic growth.

Currently the Fed Targets