Multiple choice

As reported in the major financial newspapers the Federal Reserve has made certain changes/corrections in its base federal funds rates.This act of the Federal Reserve will bring an effect directly and immediately on the banks located in

  1. Russia

  2. USA

  3. Japan

  4. China

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Federal Reserve's base federal funds rate decisions directly and immediately affect banks in the USA because it's the central bank of the United States. Foreign banks may feel indirect effects, but US banks are the immediate target of Fed policy.