Discount rate ( interest rate that banks pay to borrow reserves from the Federal Reserve) is determined by
-Federal Reserve Board of Governors
-Federal Reserve banks
-commercial banks
"A"
The discount rate is not a market set rate but it is proposed by the 12 governors of the Fed and approved by the Federal reserve boards of governor.
Discount rate ( interest rate that banks pay to borrow reserves from the Federal Reserve) is...
31. Banks pay the _____________ rate when they borrow reserves from other banks. Banks pay the ______________ rate when they borrow reserves from the Fed. discount; federal funds federal funds; prime federal funds; discount prime; discount
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...
The regional Federal Reserve Banks establish the discount rate, and do not require approval from the The Federal Reserve Board of Governors. True False
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...
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...
The Federal Reserve pays interest on the reserve deposits banks hold with the Fed. Explain if and how the banks could earn any profit without cost in the following situations by taking advantage of differences in the Discount rate, Federal funds rate and interest paid on reserves. Banks would just borrow/lend each other or from the Fed or hold reserves in their account. -The discount rate is 2.5%, the effective federal funds rate is 2% and the interest paid on...
of the Federal Reserve 18. The Federal Open Market Committee (FOMC) is made up of: A) the chair of the Board of Governors along with the 12 presidents of the Fede ent of the New York al Reserve System along with Banks. B) the seven members of the Board of Governors along with the president of the Federal Reserve Bank. C) the seven members of the Board of Governors of the Federal Reserve S the three members of the Council...
Excess reserves of commercial banks which are deposited with Federal Reserve Banks are referred to as: (A) discount funds (B) certificates of deposit (C) excess equity funds (D) federal funds
Question 33 2 Lending temporary excess reserves held at the Federal Reserve Banks is a way that banks can partly reconcile the conflicting goals of: Stocks and flows Inputs and outputs Profit and liquidity Expansion and contraction Question 34 2 pt The multiple by which the commercial banking system can expand the supply of money is equal to: Its excess reserves The reciprocal of the discount rate The reciprocal of the reserve ratio The ratio of fixed to liquid assets...