The most likely target range for the federal funds rate in this scenario would be 2.00 to 2.25 percent. C
which of the following is most likely to be the fed's target range for the federal funds rate?
The Federal Reserve (Fed) uses the federal funds rate as a key tool to influence monetary policy and manage the economy.
The federal funds rate is the interest rate at which depository institutions lend funds to each other overnight to meet reserve requirements.
Based on the given information that the effective federal funds rate is 2.14 percent, the most likely target range for the federal funds rate set by the Federal Reserve (Fed) would be the range that includes or is closest to 2.14 percent.
Among the answer choices provided, the range that includes 2.14 percent is:
C) 2.00 to 2.25 percent
Therefore, the most likely target range for the federal funds rate in this scenario would be 2.00 to 2.25 percent.
If the effective federal funds rate is 2.14 percent, which of the following is most likely to be the Fed's target range for the federal funds rate? Multiple Choice 0.00 to 0.25 percent 1.00 to 1.25 percent 2.00 to 2.25 percent None of the answer choices are correct.