The money market indicator that usually feels the first impact from Federal Reserve policy moves is the:
A) Treasury bill rate
B) Federal Reserve's discount rate
C) Federal funds rate
D) Bank CD rate
E) None of the above

Question

Quizplus · Accepted Answer

The Federal funds rate is the interest rate at which depository institutions trade federal funds (balances held at Federal Reserve Banks) with each other overnight. It is the primary tool used by the Federal Reserve to influence monetary policy and is usually the first to reflect changes in Fed policy.

The Money Market Indicator That Usually Feels the First Impact