EBK ECONOMICS OF MONEY, BANKING AND FIN
11th Edition
ISBN: 8220101336934
Author: Mishkin
Publisher: PEARSON
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Question
Chapter 9, Problem 1Q
To determine
To identify: The reason for a bank to borrow money from the other bank at a higher rate than the Fed (Federal bank).
Expert Solution & Answer
Explanation of Solution
The reason for a bank to borrow money from the other bank at a higher rate than the Fed (Federal bank) is as follows:
The Fed might put a limitation on the bank to borrow funds in the future from it, in case of simultaneously borrowing funds from Federal bank. The borrowing procedure from other banks involves fewer terms and conditions as in comparison to Federal bank, which makes it an easier way to borrow funds.
Economics Concept Introduction
Introduction: Borrow fund is the amount of money that has been taken as a loan with a maturity period and the interest has to be paid on the borrowed funds.
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Chapter 9 Solutions
EBK ECONOMICS OF MONEY, BANKING AND FIN
Ch. 9 - Prob. 1QCh. 9 - Prob. 2QCh. 9 - Prob. 3QCh. 9 - Prob. 4QCh. 9 - Prob. 5QCh. 9 - Prob. 6QCh. 9 - Prob. 7QCh. 9 - Prob. 8QCh. 9 - Why do equity holders care more about ROE than...Ch. 9 - Prob. 10Q
Ch. 9 - Prob. 11QCh. 9 - Prob. 12QCh. 9 - Prob. 13QCh. 9 - Prob. 14QCh. 9 - Prob. 15QCh. 9 - Prob. 16QCh. 9 - Prob. 17QCh. 9 - Prob. 18QCh. 9 - Prob. 19APCh. 9 - Prob. 20APCh. 9 - Prob. 21APCh. 9 - Prob. 22APCh. 9 - Prob. 23APCh. 9 - Prob. 24APCh. 9 - Prob. 25APCh. 9 - Prob. 1DAPCh. 9 - Prob. 2DAPCh. 9 - Prob. 1WECh. 9 - Prob. 2WE
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