Which of the following interest rate is the rate charged by Federal Reserve Banks for their loans to the financial institutions? A) Federal Funds rate B) Prime rate C) Discount rate D) Treasury bond yield rate
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- What specific interest rate is targeted by the Fed Open Market Committee? Inflationary rate primary credit lending rate discount rate nominal rate federal funds rateThe discount rate is the rate that the O Fed charges member banks. Fed charges the Treasury for sales of securities. O Fed charges on government securities. O Treasury pays on savings bondsWhich interest rate is used on very short-term loans from one bank to another? A. Prime interest rate B. Commercial paper rate C. Treasury bill rate D. Fed funds rate
- With open market operations, the federal reserve sets the interest rate it lends to banks. Ture or falseAssume that the government sets a binding price ceiling on the interest rate that banks charge on loans.Explain carefully the impact of this policy on the financial marketExplain the interest rate sensitivity of government debt as a function of: i) its maturity and ii) the level of coupon it pays.
- what are the tools the Federal Reserve uses to control monetary policies. Expand on how the Federal Reserve System uses the interest rate to affect the money supply.The discount rate is O the interest rate commercial banks charge each other for overnight loans. the interest rate the Federal Reserve charges member banks for loans from the Fe the interest rate consumers with good credit pay for bank loans. O the interest rate the Federal Reserve charges consumers for short term loans.what is the relationship between tne intrest rate and the bank prime loan rate
- Classify the following financial instruments as money market securities or capital market securities: Banker’s acceptances Commercial paper Common stock Corporate bonds Mortgages Negotiable certificates of deposit Repurchase agreements U.S. Treasury bills U.S. Treasury notes Federal fundshow does the Federal Reserve System use the interest rate to affect the money supply.What is the initial amount of loan receivable on the part of the National Bank??
