Which of the following statements is correct? Question 5 options: A) The prime rate involves longer, more risky loans than the federal funds rate. B) The federal funds rate is derived based on the prime rate. C) The discount rate is the rate banks charge one another on overnight loans. D) The federal funds rate is the rate banks charge their most creditworthy customers.
Which of the following statements is correct? Question 5 options: A) The prime rate involves longer, more risky loans than the federal funds rate. B) The federal funds rate is derived based on the prime rate. C) The discount rate is the rate banks charge one another on overnight loans. D) The federal funds rate is the rate banks charge their most creditworthy customers.
Chapter14: Money And The Federal Reserve System
Section: Chapter Questions
Problem 15SQ
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Which of the following statements is correct?
Question 5 options:
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