What is the federal funds rate?

a.)the interest rate that the federal reserve charges commercial banks for overnight loans
b.)the interest rate that the federal reserve charges commercial banks for long-term loans
c.)the interest rate that banks charge each other for long-term loans
d.)the interest rate that banks charge each other for overnight loans

Your answer would be D. the interest rate that banks charge each other for overnight loans

The answer is "D.)the interest rate that banks charge each other for overnight loans".

The federal funds rate is the interest rate at which store foundations like banks loan hold adjusts to different bets on a medium-term premise. Stores are abundance adjusts held at the Federal Reserve to keep up save prerequisites. These prerequisites are set up so as to keep banks from loaning out a measure of cash which may result in an unsustainable measure of money close by.  

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explanation:

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