Question

Which of the following statements is most correct?
A. The market federal funds rate equals the target federal funds rate.
B. Since 2008, the market federal funds rate has remained solidly within the target range announced by the Fed.
C. Since 2008, the market federal funds rate has varied wildly, sometimes moving outside the target range announced by the Fed.
D. There doesn't appear to be any relationship at all between the target and market federal fund rates.

Answer

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