1. Determine if is true or false a.The federal funds rate is the interest rate t

Question

1. Determine if is true or false
a.The federal funds rate is the interest rate that banks charge each other.
True
False
b.The account of a bank in the Federal Reserve (Central Bank) is similar to your own bank account.
True
False
c. Liquid assets are those that are difficult to convert into money.
True
False
d. The Federal Reserve provides banking services to companies and individuals.
True
False
e. All financial intermediaries are required to maintain a minimum percentage of deposits.
True
False

Explanation / Answer

1. A. This is true. This is the rate at which banks lend funds to each other.

1.B. This is True.

1.C. This is False. These are assets that are closest to money.

1.D. This is False. The Fed does not cater to the public directly.

1.E. This is True. These are stipulated by the Fed.

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