Question: 3 ) The FOMC has currently set a target range for the federal funds rate of 5 . 2 5 - 5 . 5 %

3) The FOMC has currently set a target range for the federal funds rate of 5.25-5.5%,
the interest rate on reserve balances is currently set at 5.4%, the discount rate is currently
set at 5.5%, the minimum bid rate on their overnight repo facility is set at 5.5%, and the
offering rate on the overnight reverse repo facility is set at 5.3%. If the FOMC decides to
raise the federal funds rate to 5.5-5.75% at their next policy meeting, they will also:
a) raise the interest rate on reserve balances by 25 basis points
b) raise the discount rate to 5.75%
c) adjust the offering rate on reverse repos to 5.75%
d) Both (a) and (b)
e) All of the above are true

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