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Bumek [7]
3 years ago
11

The interest rate charged on overnight loans of reserves between banks is A) federal funds rate. B) prime rate. C) Treasury bill

rate. D) discount rate
Business
1 answer:
eimsori [14]3 years ago
7 0

Answer:

A) federal funds rate

Explanation:

At the end of every day, banks are required to have a certain percentage of deposits on hand (the government sets the amount so that banks don't loan out all of their money at once). In order to have the right amount on hand, banks loan each other money at the federal funds rate of interest.

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