The federal funds rate is the interest rate on short-term loans made by: - which bank has the best interest rate for term d
The federal funds rate is the interest rate on short-term loans:
A. Fed to commercial banks.
As the Federal Government to the Federal Reserve.
C. Federal Reserve to the federal government.
D. While the federal government to the commercial banks.
E. Commercial banks and other commercial banks.
2 comments:
A. Fed to commercial banks.
This is the rate at which contribute to the depository institutions, which is stored in the balance sheets of the U.S. Federal Reserve and other financial institutions (usually) at night.
... http://en.wikipedia.org/wiki/Federal_fun
A. Fed to commercial banks. The Federal Reserve, which is responsible for monetary policy in an economy that is able to lend money to commercial banks, often at low interest rates, but depends on the economic situation in the market if and when you want to increase or to reduce the money supply.
HC
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