Federal funds rate and the prime interest rate

Reference no: EM13696740

Distinguish between the Federal funds rate and the prime interest rate. Which of these two rates does the FED explicitly target in undertaking its monetary policy?

Reference no: EM13696740

Questions Cloud

Two major categories of long-term investments : Identify and discuss the two major categories of long-term investments discussed, Debt securities , Equity securities. Do you believe one is better than the other? Why or why not?

What were its profit maximizing quantity and price : When the iPad was introduced, Apple’s, Apples constant marginal cost of producing this iPad was about $220. We estimate that Apple’s inverse demand function for the iPad was P= 770 – 11Q, where Q is millions of iPad purchased. What were its profit ma..

What would be the recognizable gain : x receives $200,000 in return for investing its plant and equipment. What would be the recognizable gain on January 1, 2013 arising from x's investment in y?

How did the fed use the main tools of monetary policy : How did the Fed use the main tools of monetary policy to respond to the financial crisis that began in 2007? What additional programs did the Fed create and implement to facilitate its role as lender of the last resort? What was the primary purpose o..

Federal funds rate and the prime interest rate : Distinguish between the Federal funds rate and the prime interest rate. Which of these two rates does the FED explicitly target in undertaking its monetary policy?

What is the basic objective of monetary policy : What is the basic objective of monetary policy? State the cause and effect chain through which monetary policy is made effective. What are the major strengths of monetary policy? Why is monetary policy easier to undertake than fiscal policy?

The best indicators of development of nations : Are economic measures (such as GDP) the best indicators of development of nations, or should we be considering alternative measures? If so, which ones would you recommend, and why? Write your answer with 900 word and 4 apa references.

Do all these equilibrium maximize overall welfare : When a small car ("Economy"-"E") collides with a larger car ("SUV"-"S") passengers in the E are put at greater risk. However, when an E collides with another E damags are minimal, whereas when an SUV collides with another SUV the damages are higher.

Research and evaluate the software programs : Research and evaluate the software programs based on the following criteria: Needs assessment -- Why would a prospective user need the program? What are the features of the program?Availability of products-- Where can a prospective user obtain the ..

User Account

All Pages