Which of the following statements about the federal funds rate is FALSE?
A) The federal funds rate is the interest rate banks pay other banks to borrow reserves.
B) The Federal Reserve Open Market Committee sets a target federal funds rate that is met through open market operations..
C) Changes in the federal funds rate lead the way other interest rates change.
D) The federal funds rate is the one interest rate that is not influenced by Federal Reserve policy.
Correct Answer:
Verified
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