Question

2. What is the Federal Funds Rate and how long does it take to mature?
1.The shortest term interest rate in the federal government, which takes one day to mature.
2.The shortest term interest rate in the federal government, which takes one month to mature.
3.The longest term interest rate in the
federal government, which takes one year to mature.
4.The shortest term interest rate in the federal government, which takes one hour to mature.​

Answer 1

What Is the Federal Funds Rate?

Federal funds rate is the target interest rate set by the Federal Open Market Committee (FOMC) at which commercial banks borrow and lend their excess reserves to each other overnight.