Every six to eight weeks, or so, the Federal Reserve meets to set the ________ rate.

Question

Quizplus · Accepted Answer

The Federal Reserve meets every six to eight weeks to set the federal funds rate, which is the rate at which banks lend and borrow from each other overnight to meet reserve requirements. This rate has a significant impact on other interest rates in the economy, such as those for mortgages and consumer loans. Therefore, the correct answer is C) federal funds.

Every Six to Eight Weeks, or So, the Federal Reserve