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What is the most likely effect of the Federal Reserve lowering the discount rate on overnight loans?
Wiki User
∙ 6y ago
The most likely effect of the Federal Reserve lowering the discount rate on overnight loans would be an increase in the money supply.
an increase in the money supply
Wiki User
∙ 6y ago
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Rate the federal reserve charges for emergency loans?
Discount rate
The rate of interest the Federal Reserve Bank charges member banks is called the .?
Discount rate
What is the highest interest rate allowed by FLORIDA law?
It is determined by comptroller of state by averaging the discount rate of the Federal Reserve Bank of New York for the preceding year and adding 500 basis points to the averaged federal discount rate.
What sevices are provided by the federal reserve system?
supervision of banks, participation of open market activities, acting as a clearinghouse, holding reserve, approving bank mergers, supplying paper currency,managing the discount rate
What is the federal reserve most visible role?
what is the federal reserve most visible role
What is the difference between federal funds rate and the discount rate?
The Federal Funds rate abbriviated as Fed Funds is the overnight loan rate between banks. The Discount Window is the Federal Reseve Bank of New York's overnight interst rate charged to banks from the Federal Reserve, called the discount window rate.
What are the means by which the Federal Reserve System effects the Discount Rate?
The FOMC sets targets for the Discount Rate. By trading securities, the Federal Reserve Bank of New York, it affects the Federal Funds Rate which is the interest rate by which banks lend to each other overnight.
Which type of policy is controlled by the Board of Governors of the Federal Reserve?
Well, if by "the federal reserve", you mean the federal reserve bank, then there are two types of policies. These are expansionary and contractionary monetary policies. In times of recession, The FED uses expansionary policies such as increasing the money supply by buying bonds, lowering the discount rate, and lowering reserve requirements.In times of over expansion, The FED uses contractionary policies such as decreasing the money supply by selling bonds, raising the discount rate, and raising reserve requirements.
What entities in the Federal Reserve System control the discount rate?
The Board of Governors in the Federal Reserve System control the discount rate.
Rate the federal reserve charges for emergency loans?
Discount rate
In the recent past the Federal Reserve has set the discount rate .?
above the federal funds rate
In The Recent Past The Federal Reserve Has Set The Discount Rate?
above the federal funds rate
The Federal Reserve is divided into how many districts?
The three main tools of the Federal Reserve are: Change the Reserve Requirement Change the Discount Rate Open-Market Operations
Which term refers to the rate of interest the Federal Reserve Bank charges member banks?
Discount rate
Should in periods of inflation the federal reserve raise or lower the discount rate?
lower
What is the rate of interest the Federal Reserve Bank charges member banks called?
discount rate
How could the federal reserve encourage banks to lend out more of their reserves?
By reducing the discount rate
