Finance
The Federal Reserve's primary tool for influencing mortgage interest rates is:
ASetting maximum FHA loan limits
BAdjusting the federal funds rate✓ Correct
CApproving individual mortgage applications
DRegulating RESPA closing disclosures
Explanation
The Federal Reserve (Fed) influences the cost of borrowing by adjusting the federal funds rate — the rate banks charge each other for overnight loans. Changes ripple through to mortgage and other consumer interest rates.
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