The __________ rate is the interest rate one bank pays another bank for a loan.

Name: The __________ rate is the interest rate one bank pays another bank for a loan.
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The federal funds rate is the interest rate at which one bank lends funds maintained at the Federal Reserve to another bank on an overnight basis. It is commonly used as a benchmark for other interest rates, such as the prime rate, which is the rate banks charge their most creditworthy customers.

The __________ Rate Is the Interest Rate One Bank Pays