What are the current levels for each of the interest rates

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Assignment: Go to the Federal Reserve Board website and find the latest information available on the prime rate, the three-month CD rate, the discount rate, and the three-month T-bill rate using the following steps. Go to federalreserve. Under "Select Statistical Releases," click on "Selected Interest Rates." Click on the most recent date. The data will be in this file on your computer screen. Questions:

1. What are the current levels for each of these interest rates?

2. Calculate the percentage change in each of these rates since May 2013.

3. What are the tools used by the Federal Reserve to implement monetary policy?

4. Explain how a decrease in the discount rate affects credit availability and the money supply.

5. Why does the Federal Reserve rarely use the discount rate to implement its monetary policy?

Reference no: EM132332439

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