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Who determines the interest rate for the nation?

O US Department of Treasury
Federal Reserve
Congress
President

1 Answer

4 votes

Answer: B

Federal Open Market Committee

Step-by-step explanation:

How does the Federal Reserve control interest rates?

The Fed sets a target range for the fed funds rate by setting the upper and lower limits, which banks then base their loans off. The Fed averages the interest rate banks charge each other overnight—this is the effective federal funds rate.

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