Question

Question 9 (Multiple Choice Worth 4 points)

(02.04 MC)

The rate of return being offered by banks on money market accounts is 3% and increasing. Which of the following might cause this to happen?

The federal funds rate has been held constant
The Federal Reserve lowered the federal funds rate
The Federal Reserve raised the federal funds rate
The rate of return on savings accounts is decreasing

Answer 1

the rate of return on savings accounts is decreasing

Answer 2

The Federal Reserve raised the federal funds rate

Explanation: just took the test and this is the correct andswer.