The specific interest rates for the lending and borrowing markets are determined by the forces of supply and demand.
The force of demand and supply in the context refers the level of borrowing and lending activities in the Credit Industry.
If the demand for credit is high in the industry, interest rate might be set at high rate to discourage borrowers from borrowing and vice versa.
Therefore, in conclusion, the Option B is correct because the specific interest rates for the lending and borrowing markets are determined by the forces of supply and demand.
Missing Options includes "A.) U.S. Treasure Department Board policy , B.) by the forces of supply and demand, C.) through open market operations, D.) by altering the discount rate"
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