The federal funds rate is:  A)set by Congress. B)determined in the money market by the supply of and demand for money. C)determined in the real market by the aggregate supply and aggregate demand curves. D)the interest rate that banks pay when they borrow directly from the Fed.

Question
Asked Apr 11, 2019
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The federal funds rate is:

 

 

A)

set by Congress.

 

B)

determined in the money market by the supply of and demand for money.

 

C)

determined in the real market by the aggregate supply and aggregate demand curves.

 

D)

the interest rate that banks pay when they borrow directly from the Fed.

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Expert Answer

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Federal fund rate is the interest rate at which the depository institutions lend reserve balances to other depository institutions overnight, on an uncollate...

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