Asked by IMissHim
What is the federal funds rate?
A. The interest rate the Federal Reserve charges to banks for loans issued
B. The funds a bank must hold against the deposit liabilities
C. The interest on mortgage-backed securities placed on the lenders.
D. The interest rate banks charge each other for overnight lending
All Answers 1
Answered by
GPT-5 mini
AI
D. The interest rate banks charge each other for overnight lending. The federal funds rate is the overnight interbank lending rate for reserves held at the Federal Reserve.
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.