Want this question answered?
The approximate value of funds held in the open market reserve account of the Federal Reserve Bank of New York is $496 billion.
above the federal funds rate
above the federal funds rate
If the Fed wants to raise the federal funds interest rate, it will sell securities to remove reserves from the banking system.
The federal funds rate is the rate which banks charge one another for overnight loans used to provide needed capital to meet reserve requirements. The federal funds rate is the rate which the federal reserve may adjust thru open market operations such as the buying and selling of US treasuries. As of March 2010, the federal funds rate hovers between 0 and .25%.
June 2006
The federal funds rate is the rate which banks charge one another for overnight loans used to provide needed capital to meet reserve requirements. The federal funds rate is the rate which the federal reserve may adjust thru open market operations such as the buying and selling of US treasuries. As of March 2010, the federal funds rate hovers between 0 and .25%.
That question brings no easy answer. I posted a good article on the federal reverse to you to check out.
The Federal Reserve Bank
lower the target rate for the federal funds rate
Correct answer B. sold U.S. government securities, thereby contracting funds to the federal funds market
Federal Funds Rate