Over the last decade or so, the Fed has emphasized the use of which of the following variables as an operating target?
A)M1
B)the fed funds rate
C)nonborrowed reserves
D)borrowed reserves

Question

Quizplus · Accepted Answer

The Fed has emphasized the use of the fed funds rate as an operating target, which is the interest rate at which depository institutions lend reserve balances to each other overnight. Through open market operations, the Fed adjusts the supply of reserves in the banking system to achieve their target fed funds rate.

Over the Last Decade or So, the Fed Has Emphasized