The rate targeted by the Federal Reserve System as it conducts monetary policy is the ________.
A)discount rate
B)prime rate
C)Treasury bill rate
D)fed funds rate

Question

Quizplus · Accepted Answer

The federal funds rate is the rate at which banks lend to each other overnight to meet reserve requirements. The Federal Reserve sets a target range for this rate as part of their monetary policy to achieve their dual mandate of maximum employment and stable prices. Adjusting the federal funds rate can influence borrowing and spending throughout the economy.

The Rate Targeted by the Federal Reserve System as It