The federal funds rate is the rate at which the Fed lends money directly to member banks.

Name: The federal funds rate is the rate at which the Fed lends money directly to member banks.
Brand: Quizplus
Rating: 4.8 (40 reviews)

Question

The federal funds rate is the rate at which the Fed lends money directly to member banks. 
 ​

Quizplus · Accepted Answer

The federal funds rate is the interest rate at which depository institutions trade federal funds (balances held at Federal Reserve Banks) with each other overnight. The Federal Reserve does not directly set this rate but influences it through open market operations and other monetary policy tools.

The Federal Funds Rate Is the Rate at Which the Fed