The ________ is the interest rate that banks charge each other for overnight loans.
A) spot interest rate
B) federal funds rate
C) discount window interest rate
D) subsidized banking interest rate

Question

Quizplus · Accepted Answer

The federal funds rate is the commonly used term for the interest rate that banks charge each other for overnight loans made out of their excess reserves. The other options listed do not accurately describe this type of interest rate.

The ________ Is the Interest Rate That Banks Charge Each