Federal funds market-federal funds rate and discount rate, Finance Basics

Assignment Help:

What does reserve requirements and the discount rate?

What the Fed Does: Reserve needs and the Discount Rate

The federal funds market

Financial market which allows banks as fall short of the reserve requirement to borrow reserves – generally just overnight – through banks which hold excess reserves.

The federal funds rate

Interest rate which banks charge for lending overnight to other bank. Found out by supply and demand, but strongly influenced by the Federal Reserve’s actions

The discount rate

The rate of interest the Fed charges onto loans to banks. One percent point above the federal funds rate.


Related Discussions:- Federal funds market-federal funds rate and discount rate

Performance review, I am facing some problems in my assignment of Performan...

I am facing some problems in my assignment of Performance Review in finance. Can anybody suggest me the proper explanation for it?

Depreciation, Which depreciation method would produce the higher NPV and ho...

Which depreciation method would produce the higher NPV and how much higher would it be?

Important points for working capital cycle, Important points for Working Ca...

Important points for Working Capital Cycle A lengthy working capital cycle is a sign of poor management of debtors and stock reflecting low turnover of debtors and stock and l

Calculate the monthly payment, On the 5 th of March 2009, the Bank of Engl...

On the 5 th of March 2009, the Bank of England (BoE) lowered its main interest rate to 0.5%, the lowest on record since the Bank has published rates in 1970, which still remains u

What are the main functions of the financial systems, What are the main fun...

What are the main functions of the financial systems? The main functions of financial systems in short are as follows: a. Give the mechanisms by that funds can be transferre

Opportunity cost or residual loss, Opportunity Cost or Residual Loss I...

Opportunity Cost or Residual Loss It is the cost due to the failure of both parties to act optimally like as in example of A. Lost opportunities because of incapability to

Profit analysis, The Audiology Department at Randall Clinic offers many ser...

The Audiology Department at Randall Clinic offers many services to the clinic’s patients. The three most common , along with cost and utilization data, are as follows: Service Var

Basic Business Math, A new pet shop wants to apportion their investment mon...

A new pet shop wants to apportion their investment money $132,000 for advertising, building upgrades, and education in the ratio of 5:4:3. How much money does each category get app

Legal rules - factors influencing dividend, Legal Rules - Factors Influenci...

Legal Rules - Factors Influencing Dividend a) Net purchase rule States that dividend may be paid from company's profit either past or present. b) Capital impairment r

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd