The short-term rate at which banks lend to each other is called the ________.

Name: The short-term rate at which banks lend to each other is called the ________.
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The fed funds rate refers to the interest rate at which depository institutions (banks) lend and borrow funds held at the Federal Reserve overnight. It is also the benchmark for many other interest rates in the economy, including mortgages, car loans, and credit card rates.

The Short-Term Rate at Which Banks Lend to Each Other