The federal funds rate is: A) set by Congress. B) determined in the money market by the supply of and demand for money. C) determined in the real market by the aggregate supply and aggregate demand curves. D) the interest rate that banks pay when they borrow directly from the Fed.

The federal funds rate is: A) set by Congress. B) determined in the money market by the supply of and demand for money. C) determined in the real market by the aggregate supply and aggregate demand curves. D) the interest rate that banks pay when they borrow directly from the Fed.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

ChapterD: Bond Prices And The Interest Rate

Section: Chapter Questions

Problem 4QP

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Question

The federal funds rate is:
	A)	set by Congress.
	B)	determined in the money market by the supply of and demand for money.
	C)	determined in the real market by the aggregate supply and aggregate demand curves.
	D)	the interest rate that banks pay when they borrow directly from the Fed.

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