The European System of Central Banks signals the stance of its monetary policy by setting a target for the
A)federal funds rate.
B)overnight cash rate.
C)lombard rate.
D)reserve rate.

Question

Quizplus · Accepted Answer

The European System of Central Banks sets a target for the overnight interest rate known as the overnight cash rate, which reflects the stance of its monetary policy. The federal funds rate belongs to the Federal Reserve System in the United States, while the lombard rate is specific to the European Central Bank's lending system, and the reserve rate refers to the percentage of deposits that banks must hold in reserve.

The European System of Central Banks Signals the Stance of Its