Which Statement Is True

Multiple Choice

Which statement is true?

A) The prime rate moves in the opposite direction from changes in the discount rate.
B) The Fed raised the Federal funds target rate and the discount rate from 1989 to mid-1992 to counter the slowdown in the economy.
C) The Federal funds target rate,the discount rate,and the prime rate generally rise and fall together.
D) The discount rate is generally 2% above the prime rate.