Question

Which one of the following statements about the Fed is
correct?
A. The Fed directly sets the discount rate and the prime
interest rate
B. The Fed directly sets neither the federal funds rate nor the
prime interest rate.
C. The Fed directly sets the prime interest rate but not the
federal funds rate.
D. The Fed directly sets both the federal funds rate and the
prime interest rate.

Answer 1

A because the feed sets discounts rate and primes

Answer 2

The statement that correctly describes the Fed is the  Fed directly sets both the federal funds rate and the prime interest rate.

What is the Fed?

The Fed means the Federal Reserve. The Fed is the Central Bank of the United States.

The functions of the Fed includes:

• Conducting monetary policy through adjusting the  federal funds rate and the prime interest rate.
• Maintaining financial stability

To learn more about federal funds rates, please check: https://brainly.com/question/20216241

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