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The Federal Funds Rate Is

Question 12

Multiple Choice
The federal funds rate is

The federal funds rate is


A) the interest rate on loans from the Fed to a bank.
B) the price the Fed pays for government securities.
C) the interest rate on loans of reserves from one bank to another.
D) the price banks pay the Fed for government securities.
E) the interest rate on loans from a bank to the federal government.

Correct Answer:

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