When the Federal Reserve lends reserves to depository institutions, it charges them interest. That interest rate is called the
A) federal funds rate.
B) loan rate.
C) prime rate.
D) discount rate.
Correct Answer:
Verified
Q220: Required reserves for a commercial bank
A) are
Q221: An open market operation involves
A) the Federal
Q222: The Fed buys securities and gives the
Q223: The discount rate is the interest rate
A)
Q224: When the Fed wants to undertake open
Q226: When the Fed sells government securities to
Q227: A decrease in the quantity of reserves
Q228: If the Federal Reserve purchases government securities,
A)
Q229: In an open market purchase, the Fed
Q230: An open market purchase of securities by
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