which one of the following answers correctly shows the correct comparison between the federal funds rate,...
which one of the following answers correctly shows the correct comparison between the federal funds rate, the discount rate and the interest rate on reserves?
A. the interest rate on reserves is the highest, then the federal fund rates is next and finally the discount is the lowest
B. the federal funds rates is the highest, then the discount rate is next and finally the interest rate on reserves is the lowest
C. the discount rate is the highest, then the federal funds rate is next and finally the interest rate on reserves is the lowest
D. the discount rate is the highest, then the interest rate on reserves is next and finally the federal funds rates is the lowest
Homework Answers
"A"
The interest rate on reserve or the prime rate is higher than the federal fund rate by 3%, federal fund rate is higher than the discount rate. i.e. the discount rate is the lowest.
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which one of the following answers correctly shows the correct
comparison between the federal funds rate,...
Figure 13-1 Federal funds rate Federal funds rate Quantity of Reserves Cuantity of Recru Federal funds...
Figure 13-1 Federal funds rate Federal funds rate Quantity of Reserves Cuantity of Recru Federal funds rate Fodral funds rate Quantity of Reserves Quantity of Reserves (0) In Figure 13-1, which panel shows the effect of a Fed open market sale on the interest rato? a. Panel (D) b. Panel (A) c. Panel (B) d. Panel (C)
Federal Funds Rate The graph to the right illustrates how the Fed uses discounting to keep...
Federal Funds Rate The graph to the right illustrates how the Fed uses discounting to keep the federal funds rate from rising far above the federal funds target. It shows a rightward shift of the demand curve for reserves from R o R. The initial equilibrium is at point 1, where the discount rate (id) is above the federal funds rate, which is equal to its target level, i#. The shift moves the equilibrium to point 2, where the federal...
9. The discount rate and the federal funds rate The discount rate is the interest rate...
9. The discount rate and the federal funds rate The discount rate is the interest rate on loans that the Federal Reserve makes to banks. Banks occasionally borrow from the Federal Reserve when they find themselves short on reserves. A lower spread between the discount rate and the federal funds rate decreases banks' incentives to borrow reserves from the Federal Reserve, thereby the quantity of reserves in the banking system and causing the money supply to The federal funds rate...
10. The discount rate and the federal funds rate The discount rate is the interest rate...
10. The discount rate and the federal funds rate The discount rate is the interest rate on loans that the Federal Reserve makes to banks. Banks occasionally borrow from the Federal Reserve when they find themselves short on reserves. A lower discount rate banks' incentives to borrow reserves from the Federal Reserve, thereby the quantity of reserves in the banking system and causing the money supply to The federal funds rate is the interest rate that banks charge one another...
Use Figure to answer the following questions. Federal Funds Rate The discount rate is the initial...
Use Figure to answer the following questions. Federal Funds Rate The discount rate is the initial equilibrium federal funds rate. R01 Rd Rd2 RS In the federals funds market, the Federal Reserve can maintain a federal funds rate between the interest paid on reserves and the discount rate without using open market operations. O A. True OB. False NBR* Quantity of Reserves, R
10. The discount rate and the federal funds rate The discount rate is the interest rate...
10. The discount rate and the federal funds rate The discount rate is the interest rate on loans that the Federal Reserve makes to banks. Banks occasionally borrow from the Federal Reserve when they find themselves short on reserves. A lower discount rate banks' incentives to borrow reserves from the Federal Reserve, thereby the quantity of reserves in the banking system and causing the money supply to The federal funds rate is the interest rate that banks charge one another...
10. The discount rate and the federal funds rate The discount rate is the interest rate...
10. The discount rate and the federal funds rate The discount rate is the interest rate on loans that the Federal Reserve makes to banks. Banks occasionally borrow from the Federal Reserve when they find themselves short on reserves. A lower discount rate banks' incentives to borrow reserves from the Federal Reserve, thereby the quantity of reserves in the banking system and causing the money supply to ipply to . The federal funds rate is the interest rate that banks...
The federal funds rate is the a. percentage of face value that the Federal Reserve is...
The federal funds rate is the a. percentage of face value that the Federal Reserve is willing to pay for Treasury Securities. b. percentage of deposits that banks must hold as reserves. c. interest rate at which the Federal Reserve makes short-term loans to banks. d. interest rate at which banks lend reserves to each other overnight. I think the answer is D but I need to double check.
1. The interest rate in the federal funds market: a. is an interest rate that is...
1. The interest rate in the federal funds market: a. is an interest rate that is largely unaffected by the policies of the Fed. b. will fall if the Fed sells bonds and, thereby, reduces the reserves available to banks. c. is determined by the imposition of price controls imposed by the Fed. d. rises when the quantity of funds demanded by banks seeking additional reserves exceeds the quantity supplied by banks with excess reserves. 2. If there is a...
The figure is drawn such that the discount rate, is above the federal funds rate What...
The figure is drawn such that the discount rate, is above the federal funds rate What would happen to the federal funds rate if there was a switch from deposits into currency (holding everything else constant) and the federal funds rate was initially at the discount rate (# = (d)? O A. The federal funds rate would rise. OB. The federal funds rate would stay at it. O C. The federal funds rate would fall. OD. The outcome cannot be...
Figure 13-1 Federal funds rate Federal funds rate Quantity of Reserves Cuantity of Recru Federal funds rate Fodral funds rate Quantity of Reserves Quantity of Reserves (0) In Figure 13-1, which panel shows the effect of a Fed open market sale on the interest rato? a. Panel (D) b. Panel (A) c. Panel (B) d. Panel (C)
Federal Funds Rate The graph to the right illustrates how the Fed uses discounting to keep the federal funds rate from rising far above the federal funds target. It shows a rightward shift of the demand curve for reserves from R o R. The initial equilibrium is at point 1, where the discount rate (id) is above the federal funds rate, which is equal to its target level, i#. The shift moves the equilibrium to point 2, where the federal...
9. The discount rate and the federal funds rate The discount rate is the interest rate on loans that the Federal Reserve makes to banks. Banks occasionally borrow from the Federal Reserve when they find themselves short on reserves. A lower spread between the discount rate and the federal funds rate decreases banks' incentives to borrow reserves from the Federal Reserve, thereby the quantity of reserves in the banking system and causing the money supply to The federal funds rate...
10. The discount rate and the federal funds rate The discount rate is the interest rate on loans that the Federal Reserve makes to banks. Banks occasionally borrow from the Federal Reserve when they find themselves short on reserves. A lower discount rate banks' incentives to borrow reserves from the Federal Reserve, thereby the quantity of reserves in the banking system and causing the money supply to The federal funds rate is the interest rate that banks charge one another...
Use Figure to answer the following questions. Federal Funds Rate The discount rate is the initial equilibrium federal funds rate. R01 Rd Rd2 RS In the federals funds market, the Federal Reserve can maintain a federal funds rate between the interest paid on reserves and the discount rate without using open market operations. O A. True OB. False NBR* Quantity of Reserves, R
10. The discount rate and the federal funds rate The discount rate is the interest rate on loans that the Federal Reserve makes to banks. Banks occasionally borrow from the Federal Reserve when they find themselves short on reserves. A lower discount rate banks' incentives to borrow reserves from the Federal Reserve, thereby the quantity of reserves in the banking system and causing the money supply to The federal funds rate is the interest rate that banks charge one another...
10. The discount rate and the federal funds rate The discount rate is the interest rate on loans that the Federal Reserve makes to banks. Banks occasionally borrow from the Federal Reserve when they find themselves short on reserves. A lower discount rate banks' incentives to borrow reserves from the Federal Reserve, thereby the quantity of reserves in the banking system and causing the money supply to ipply to . The federal funds rate is the interest rate that banks...
The figure is drawn such that the discount rate, is above the federal funds rate What would happen to the federal funds rate if there was a switch from deposits into currency (holding everything else constant) and the federal funds rate was initially at the discount rate (# = (d)? O A. The federal funds rate would rise. OB. The federal funds rate would stay at it. O C. The federal funds rate would fall. OD. The outcome cannot be...
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