Fed Funds Market

Related BrainMass Solutions

• Contractionary monetary policy

  These loans take place in a private financial market called the federal funds market. The interest rate on the overnight borrowing of reserves is called the federal funds rate or simply the "funds rate."

• Federal Reserve

  The Fed affects interest rates mainly through open market operations and the discount rate, and both of these methods work through the market for bank reserves, known as the federal funds market.

• Federal Reserve

  The Fed affects interest rates mainly through open market operations and the discount rate, and both of these methods work through the market for bank reserves, known as the federal funds market.

• Federal Reserve's Relationship to the Money Supply

  The Fed affects interest rates mainly through open market operations and the discount rate, and both of these methods work through the market for bank reserves, known as the federal funds market.

• Money Policy: Market Interest Rates

  260498 Money Policy: Market Interest Rates When the Fed purchases securities, the total funds of commercial banks ________ by the market value of securities purchased by the Fed.

• Federal Reserve

  As the laws of supply and demand take over in the reserves market, the cost of funds for the remaining reserves finds its level at the federal funds rate.

• Fed Funds and Discount Rate Cuts

  The Federal Reserve actually sets the discount rate, but the open market determines the Fed Funds Rate. The Fed can and does set a Fed Funds Rate, but it serves only to set a range in actual practice.

• Federal Funds Rate

  The solution explains how the Fed usually controls the Federal Funds Rate.

• Fed Funds rate, 10 Year T-bill, Mortgage Rate relationship

  And now im reading that Alan Greenspan is raising the fed funds rate to try to influence the 10 year T-bill interest rates to go up higher, to control the housing market? (how does that work? why would the fed funds rate affect 10 year t-bills?)