Asked by Rafaiel Ghazaryan on Jun 06, 2024
Verified
Changing the discount rate and the fed funds rate simultaneously is called __________.
Fed Funds Rate
The interest rate at which depository institutions lend reserve balances to other depository institutions overnight, a vital monetary policy tool used by the Federal Reserve.
Discount Rate
The rate at which the central bank lends money to commercial banks and other financial institutions through its discount window.
- Examine the impact of open market operations on the pricing of bonds and the fluctuation of interest rates.
Verified Answer
FA
Learning Objectives
- Examine the impact of open market operations on the pricing of bonds and the fluctuation of interest rates.