Which interest rate is most likely to serve as the target interest rate by a Central Bank?   a)The rate on six-month loans of bank reserves.   b)The rate on overnight loans of bank reserves.   c)The rate on 30-year mortgage loans.   d)The rate on credit card balances.   e)The rate on 10-year auto loans.

Economics For Today
10th Edition
ISBN:9781337613040
Author:Tucker
Publisher:Tucker
Chapter24: Money And The Federal Reserve System
Section: Chapter Questions
Problem 16SQ
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Which interest rate is most likely to serve as the target interest rate by a Central Bank?

 

a)The rate on six-month loans of bank reserves.

 

b)The rate on overnight loans of bank reserves.

 

c)The rate on 30-year mortgage loans.

 

d)The rate on credit card balances.

 

e)The rate on 10-year auto loans.

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