CFA Practice Question

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CFA Practice Question

The interest rate the Fed targets is the ______.

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
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