Finance

The Federal Reserve's monetary policy affects South Carolina mortgage rates primarily through:

ADirect control of all mortgage interest rates
BSetting short-term interest rates that influence overall borrowing costs✓ Correct
CApproving all mortgage applications
DRegulating all real estate transactions

Explanation

The Fed's monetary policy (adjusting the federal funds rate) influences overall interest rate levels. Higher Fed rates generally push mortgage rates higher; lower rates tend to lower mortgage rates.

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