asked 55.6k views
3 votes
The __________ Rate is the interest rate the Fed charges banks and thrifts to borrow to meet the reserve requirement.

1 Answer

4 votes

Answer:

Federal funds rate

Step-by-step explanation:

The federal funds rate is the interest rate at which depository institutions (banks and thrifts) lend reserve balances to each other to meet reserve requirements.

Reserve requirements are the amount of funds required by the central bank that banks should keep as reserves to meet liabilities

the Federal funds rate is currently maintained at a range of 0% to 0.25%

answered
User Peli
by
8.2k points
Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.