Asked by Ashlee Dalessandro on Jun 19, 2024
Verified
The federal funds rate refers to the
A) percentage of federal spending that is made up of "uncontrollables," budget items that cannot be controlled through the regular budget process.
B) percentage of federal spending on programs that are controlled through the regular budget process.
C) congressionally determined limit on the amount of national debt that can be issued by
The U.S.Treasury.
D) interest rate on loans between banks.
Federal Funds Rate
The interest rate at which banks and credit unions lend reserve balances to other depository institutions overnight, used by the Federal Reserve to influence economic conditions.
Uncontrollables
Refers to expenditures and other aspects of the government's budget that are considered beyond the direct and immediate control of legislators or policymakers, often due to statutory commitments.
- Grasp the concept of federal funds rate and its impact on the economy.
Verified Answer
EL
Ethan LocklearJun 22, 2024
Final Answer :
D
Explanation :
The federal funds rate refers to the interest rate at which banks lend funds to one another overnight. This rate is set by the Federal Reserve and can impact other interest rates in the economy, such as those on loans for businesses and individuals.
Learning Objectives
- Grasp the concept of federal funds rate and its impact on the economy.