Answered: The federal funds rate is the interest…

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The federal funds rate is the interest rate that:

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter15: Money Creation

Section: Chapter Questions

Problem 13SQ

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Question

The federal funds rate is the interest rate that:

the Fed charges banks to borrow money

banks charge other banks for short-term loans

none of the answers given is correct

the federal government charges banks to borrow money

federally chartered banks charge their customers for commercial loans

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