When the Federal Reserve sets an interest rate goal, it typically focuses on having the _____ rate reach that goal.
A) open market
B) quantitative easing
C) money market
D) federal funds

Question

Quizplus · Accepted Answer

The Federal Reserve sets an interest rate goal primarily for the federal funds rate, which is the interest rate at which depository institutions lend balances at the Federal Reserve to other depository institutions overnight. This rate is a key tool used by the Fed to influence monetary policy and control inflation.

When the Federal Reserve Sets an Interest Rate Goal, It