The Fed funds rate usually hovers around the Fed's:
A)target rate.
B)set rate.
C)quoted rate.
D)limit rate.
E)average rate.

Question

Quizplus · Accepted Answer

The Fed funds rate is the interest rate at which one bank lends funds to another bank overnight to meet the reserve requirement. The Federal Reserve sets a target for this rate, and the actual rate usually hovers around this target rate. Therefore, the best choice is A, target rate.

The Fed Funds Rate Usually Hovers Around the Fed's