Question: Which statement is the most accurate? ( LO5 ) a) The Federal funds rate and the discount rate rise and fall together. b) The prime

Which statement is the most accurate? ( LO5 )

a) The Federal funds rate and the discount rate rise and fall together.

b) The prime rate of interest is usually about a half percentage point below the Federal funds rate.

c) The Federal funds rate did not change at all during the late 1990s.

d) The Federal Reserve has little infl uence on interest rates.

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