Federal funds interest rates appear to change independent of other money market interest rates.

Question

Quizplus · Accepted Answer

Federal funds interest rates often influence other money market interest rates because they are a benchmark for the cost of borrowing money. When the Federal Reserve adjusts the federal funds rate, it indirectly affects the rates that banks charge each other and consumers, thereby influencing the overall money market rates.

Federal Funds Interest Rates Appear to Change Independent of Other