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Which of the Following Best Describes the Relationship Between the Fed

Question 56

Multiple Choice

Which of the following best describes the relationship between the Fed funds rate and the discount rate,beginning in 2003?


A) The Fed funds rate is usually lower than the discount rate.
B) The two rates are equal.
C) The discount rate is usually lower than the Fed funds rate.
D) There is no relationship between the two rates.

Correct Answer:

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