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All interest rates in the economy are set by the federal reserve. true or false

User MikeRand
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Answer:

False

Step-by-step explanation:

Most interest rates in the economy are not set by federal reserve. For example, banks decide what interests to pay different kind of deposits and charge loans of different risks on their own (with consideration for competition and profitability).

What the Fed does is set important rates (discount rate and funds rate) that influence other interest rates in the economy.

User Quentin Revel
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