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Which interest rate is specifically targeted in open market operations?

AThe federal filing rate
BThe federal fishing rate
CThe federal funds rate
DThe federal freight rate
Answer & Solution
Correct answer: C. The federal funds rate
1. Open market operations aim at one rate in particular. 2. That rate is the one banks charge each other overnight. 3. The specific rate targeted in open market operations is the federal funds rate. 4. Other rates then move with it. _Source: OpenStax Principles of Macroeconomics 3e (CC BY 4.0), Ch 15 'Monetary Policy and Bank Regulation', sections 15.1-15.5_
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