The interest rate that the Federal Reserve pays banks on the reserves they hold is called the
A)open-market rate.
B)discount rate.
C)preference rate.
D)None of the above are correct.

Question

Quizplus · Accepted Answer

The interest rate that the Federal Reserve pays banks on the reserves they hold is called the "interest on reserves" or "interest on excess reserves," not any of the options listed.

The Interest Rate That the Federal Reserve Pays Banks on the Reserves