The risk-free interest rate is determined primarily by the
A) largest commercial banks.
B) Internal Revenue Service.
C) U.S. Treasury.
D) Federal Reserve.

Name: The risk-free interest rate is determined primarily by the A) largest commercial banks. B) Internal Revenue Service. C) U.S. Treasury. D) Federal Reserve.
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Question

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The Federal Reserve influences the risk-free interest rate through its monetary policy actions, such as setting the federal funds rate, which affects short-term interest rates.

The Risk-Free Interest Rate Is Determined Primarily by the