The interest rate charged from one federal reserve member bank to another federal reserve member bank is the federal funds rate.
The interest rate that banks charge other organizations for overnight loans of excess funds from their reserve accounts is known as the federal funds rate.
The law mandates that banks keep a reserve in a bank account with the Federal Reserve equal to a certain portion of their deposits.
A reserve requirement, which is based on a portion of the bank's total deposits, determines how much cash a bank must have on hand in its Fed account.
Hence, option B is correct.
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