- CFA Exams
- CFA Level I Exam
- Study Session 5. Economics (2)
- Reading 16. Monetary and Fiscal Policy
- Subject 4. The Objectives of Monetary Policy
CFA Practice Question
The interest rate the Fed targets is the ______.
B. discount rate
C. federal repo rate
A. federal funds rate
B. discount rate
C. federal repo rate
Correct Answer: A
The federal funds rate is the interest rate on overnight loans that banks make to each other.
User Contributed Comments 2
| User | Comment |
|---|---|
| gill15 | The discount rate is the same as the federal Repo rate right? |
| ezimokha | yuuuup |