SIE Exam Question 461: Answer and Explanation

Question: 461

Which one of the following interest rates is controlled by the Federal Reserve Board?

• A. Federal funds rate.
• B. Prime rate.
• C. Discount rate.
• D. Broker call loan rate.

Correct Answer: C

Explanation:

C: The discount rate is the rate that is actually controlled by the Federal Reserve Board. All of the other rates are adjusted in the marketplace by the lenders as a result of a change in the discount rate.