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
Answer 31: Option C is correct. Banks pay the Federal fund rate when they borrow money from other bank. It means an interest rate charged by the one bank to another bank.
Banks pay thethe Discount rate when they borrow reserve from the fed. When Commercial bank borrow money from Central bank which lead to providing Discount rate.
31. Banks pay the _____________ rate when they borrow reserves from other banks. Banks pay the...
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
The __________ is the rate financial institutions charge each other for overnight loans used as reserves, while the __________ is the rate that the Fed charges depository institutions to borrow reserves from a regional Federal Reserve Bank. federal funds rate / prime rate discount rate / secondary rate federal funds rate / discount rate discount rate / prime 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...
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...
The federal funds rate reflects the cost for banks to borrow from other banks. True or 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...
The discount rate is the interest rate paid by: the Fed to banks who deposit funds with it. the Fed to the Treasury to buy U.S. government securities. O banks when they borrow from the Fed. O banks when they borrow from each other.
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 funds rate is O A. the interest rate on bonds issued by the federal government. OB. the interest rate paid on reserves held with the Fed. OC. the interest rate at which banks can borrow excess reserves from other banks. OD. none of the above.