The Federal Reserve cut the Fed Funds Rate and the Discount Rate today. What are these rates and will they spur the economy?© BrainMass Inc. brainmass.com June 3, 2020, 10:00 pm ad1c9bdddf
The Fed Funds Rate is the rate at which funds may be borrowed from one bank to another. The discount rate is the interest rate at which a bank borrows funds directly from the Reserve.
The Federal Reserve mandates that banks and other lending institutions keep a certain level of cash in their Federal Reserve ...
The solution describes what the Fed Funds Rate and Discount Rate are and how cutting them effects the economy.