The federal funds rate is the interest rate that
a. the government charges banks who borrow from it
b. the Fed charges banks who borrow from it
c. the federal government pays to borrow money
d. federally or nationally chartered banks charge their customers for commercial loans
e. banks charge other banks for short-term loans
E
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If a firm fails to provide investors with at least a normal rate of return
A) it will not be able to remain in business in the short run. B) it will have a positive economic profit but a negative accounting profit. C) it will not be able to remain in business in the long run. D) it will shut down in the short run but will be able to remain in business in the long run.
A political candidate promises voters more funding for AIDS research and child care and assures them they will not have to sacrifice any other goods or services to obtain the additional programs.
A. This may be possible if the economy has unemployed resources. B. This is possible only in a fully employed economy. C. This is possible if the economy is producing on its production possibilities curve. D. None of the choices are possible.