In2019, an article in the Wall Street Journal had the headline"Fed, Facing Pressure on RateCut, to Decide on NextMove."

Source: DavidHarrison, "Fed, Facing Pressure on RateCut, to Decide on NextMove," Wall Street Journal, June19, 2019.

What rate was the headline likely referringto?

A.

Treasury rate.

B.

Discount rate.

C.

Federal funds rate.

D.

Commercial rate.

Who is able to borrow and lend at thatrate?

A.

Banks are able to borrow from the Federal Reserve at that rate.

B.

Banks are able to borrow and lend from each other at that rate.

C.

Households are able to borrow from banks at that rate.

D.

The government borrows at that rate by selling Treasury securities.

Why does theFed's actions to increase or decrease the rate you identified above attract so muchattention?

A.

TheFed's actions attract so much attention because this rate is set precisely by the Fed.

B.

This is the rate that directly affects the mortgage rates that households pay.

C.

This rate ultimately has a substantial effect on many other interest rates.

D.

This rate has a greater effect onlong-term interest rates than onshort-term rates.