Multiple Choice
Which one of the following statements is true?
A) The federal funds rate is the rate the Fed charges member banks when they borrow reserves.
B) The federal funds rate cannot be changed without an act of Congress.
C) Traditionally, the Fed has kept the discount rate above the federal funds rate.
D) Traditionally, the Fed has kept the discount rate below the federal funds rate.
Correct Answer:
Verified
Correct Answer:
Verified
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