The federal funds rate is the interest rate on short-term loans made by:

Answers:1   |   LastUpdateAt:2012-08-10 21:42:02  

Question
KATHY >> PLEASE HELP
Asked at 2012-08-06 17:53:46
The federal funds rate is the interest rate on short-term loans made ​​by :

A. Federal Reserve to commercial banks .
B. The Federal Government the Federal Reserve .
C. Federal Reserve federal government .
D. the federal government to commercial banks .
E. commercial banks to other commercial banks .
Answer1lynxAnswered at 2012-08-07 12:01:46
A. The Fed to commercial banks . The Federal Reserve is responsible for monetary policy in a given economy is able to lend money to commercial banks , and often at interest rates low, but depends on the economic situation of the market when and if desired increase or decrease the money supply .

H.C.
Answer2Kyle DyeAnswered at 2012-08-10 21:42:02
E. The Fed intervenes in the market to control the rate of interest on loans . Direct Loans Federal Reserve Banks to commercial banks pay the discount rate .
http://en.wikipedia.org/wiki/Discount_wi
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