Question

Select all the choices that accurately describe administered rates.
Multiple select question.

Administered rates are a product of market forces.

Administered rates serve as an outside influence on many equilibrium interest rates.

The Fed uses three administered rates.

Administered rates are directly controlled by the Fed.

Answer 1

The following choices accurately describe administered rates:

1. **Administered rates are a product of market forces.** (True, in a general sense, administered rates can reflect underlying market conditions.)

2. **Administered rates serve as an outside influence on many equilibrium interest rates.** (True, they can influence other rates in the market.)

3. **The Fed uses three administered rates.** (True, the Federal Reserve does set certain administered rates, including the federal funds rate and the discount rate.)

4. **Administered rates are directly controlled by the Fed.** (True, the Fed directly sets certain rates like the discount rate, which is an administered rate.)

Thus, all the choices provided can accurately describe administered rates.