In the market for reserves, if the federal funds rate is above the interest rate paid on excess reserves, an open market purchase ___ the supply of reserves and causes the federal funds interest rate to ___, everything else held constant. 相关知识点: 试题来源: 解析 B) increases; fal...
17) In the market for reserves, if the federal funds rate is above the interest rate paid on excess reserves, an open market purchase ___ the supply of reserves and causes the federal funds interest rate to ___, everything else held constant. A. decreases; fall B. increases; fall ...
百度试题 题目In the market for reserves, when the federal funds rate is 3%, raising the discount rate from 5% to 6% 相关知识点: 试题来源: 解析 has no effect on the federal funds rate.反馈 收藏
and we remain strongly committed to bringing inflation back down to our 2 percent goal. Price stability is the responsibility of the Federal Reserve. Without
The Federal Funds Rate The interest rate that impacts the stock market is the federal funds rate. The federal funds rate is the interest rate that depository institutions—banks, savings and loans, and credit unions—charge each other for overnight loans (whereas the discount rate is the interes...
After defining the federal funds rate, let's explore how it's determined. Two factors come into play. First, there's theFederal Open Market Committee(FOMC), which is the committee that determines the federal funds rate. Second, there's theOpen Market Operations(OMO). It's one of the Fed...
What Is the Bond Market and How Does It Work? The bond market is where various debt instruments are sold by corporations and governments. Bonds are issued to raise debt capital to fund operations or seek growth opportunities. Issuers promise to repay the original investment amount plus interest....
U.S. Federal Reserve Chair Jerome Powell attends a press conference in Washington, D.C., the United States on May 3, 2023. The U.S. Federal Reserve raised the target range for the federal funds rate by 25 basis points to 5-5.25 percent on May 3, saying that the Fed "remains highly...
Moving towards market principles will induce more technological advances and innovations. 9. You would have to take the time and expense to gather information on the borrower and his likelihood of repaying. Your funds would not be liquid. If you wanted the money back before the loan was due,...
Of course, banks can’t charge each other a “range.” They typically settle the interest rate at the midpoint of the Fed’s target, though it tends to fluctuate. Known as the “effective federal funds rate,” this rate is influenced by market factors of supply and demand as well as ...