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Overnight loans from one bank to another for reserve purposes entail an interest rate called the
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Overnight loans from one bank to another for reserve purposes entail an interest rate called the

User Sojin
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Answer: federal funds rate

Explanation: Federal funds rate is simply the interest rate derived from the overnight loans between one depository institution or bank and another bank. It interest rate is gotten when one bank lend or borrow funds from another bank .

The interest rate the central bank of a country sets to target monetary policy is the overnight rate.

User Ben Flowers
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