Interest rate at which federal funds are borrowed and can be lent is classified as

A borrowing rate
B supplying rate
C lending rate
D federal funds rate

Correct Answer: federal funds rate

Interest rate at which federal funds are borrowed and can be lent is classified as federal funds rate. The federal funds rate refers to the interest rate that banks charge other banks for lending them money from their reserve balances on an overnight basis. By law, banks must maintain a reserve equal to a certain percentage of their deposits in an account at a Federal Reserve bank.
Bissoy MCQ
#Management #International Finance And Treasury

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