The interest rate at which the federal funds are borrowed and can be lent is classified as ____________?
Correct answer: D. federal funds rate
- A. borrowing rate
- B. supplying rate
- C. lending rate
- D. federal funds rate
Explanation
The federal funds rate is the interest rate charged on short-term loans of federal funds between eligible financial institutions. Borrowing and lending rates are generic terms, not the specific market rate named here.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
Practise Business Finance
975 free Business Finance MCQs from Management Sciences, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Management Sciences questions like this
Management Sciences is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Business Finance questions
The agreement which incurs the transaction between two parties and promise held that second party will repurchase security at specific price is classified as ___________?
The type of funds that have transfer transactions between financial institutions are classified as __________?
The financial instruments are traded in money markets and then traded in __________?
The transaction of federal funds usually take place in the form of ___________?
The bidder who can receive the allocation of treasury bills before all other bidders is the result of ___________?
The non-competitive bidding of treasury bills also allow participation of ___________?