Trivia ForgePlay free →

In the United States, what is the term for the interest rate at which depository institutions lend reserve balances to other depository institutions overnight?

Show answer

Federal funds rate

In the US, this rate is set by the Federal Open Market Committee (FOMC). It is a key tool for monetary policy, as it influences other interest rates throughout the economy, such as mortgages and credit cards.

Also asked as:
  • What is the U.S. term for the interest rate banks charge each other for overnight loans of reserve balances?

Would you remember this in 6 months?

Trivia Forge uses spaced repetition so facts stick. Free, no signup needed.

Practice Economics questions →

More Economics trivia

See all 215 →