Who has authority to set interest rates and lending activities for the nation's banks?
A) the Federal Reserve System
B) the Secretary of the Treasury
C) the Internal Revenue Service
D) the Securities and Exchange Commission
E) the Federal Deposit Insurance Corporation

Question

Quizplus · Accepted Answer

The Federal Reserve System has the authority to set interest rates and lending activities for the nation's banks through the Federal Open Market Committee (FOMC) meetings. The FOMC determines the target federal funds rate, which influences other interest rates such as the prime rate and consumer loan rates.

Who Has Authority to Set Interest Rates and Lending Activities