For the European Central Bank (ECB), the equivalent of the FOMC's target federal funds rate is the: ?

Question

For the European Central Bank (ECB), the equivalent of the FOMC's target federal funds rate is the: ?

Quizplus · Accepted Answer

The European Central Bank's equivalent of the FOMC's target federal funds rate is the target refinancing rate. It is the interest rate at which Eurozone banks can borrow from the ECB. The European target discount rate does not exist, and the London Inter-Bank Offer Rate (LIBOR) is a benchmark interest rate used globally for lending between banks. The European target federal funds rate is not a relevant term.

For the European Central Bank (ECB), the Equivalent of the FOMC's