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What if the Federal Open Market Committee chooses to decrease the money supply the Federal Reserve would?
lower the target rate for the federal funds rate
What impact did the policy actions have on the fed funds rate?
The impact on the federal funds rate, by any policy, would depend on which policy is in question. Some policies will cause the federal funds rate to increase while other policies will cause the federal funds rate to decrease.
What is the federal funds target rate which is set by the federal open market?
.25%
Open market purchase will result in?
increase in bank reserves and a decrease in the federal funds rate
How do you change federal funds rate?
The federal funds rate is the interest rate banks charge on loans in the federal funds market. The federal funds rate is not set administratively by the Fed. Instead, the rate is determined by the supply of reserves relative to the demand for them.
What is the difference between the federal funds rate and the discount rate?
Financial and banking jargon is particularly arcane and confusing because different people use different terms for the same ideas, concepts, and rates. Other terms sound the same but are different. The federal funds rate, for example, is sometimes called the federal funds target rate or the intended federal funds rate. The latter two terms are more descriptive, because both imply that the Federal Reserve does not have direct control over the rate. The actual federal funds rate is the weighted average of interest rates that banks charge each other. It's set by open market competition but comes remarkably close to the target set by the Fed. The discount rate, in contrast, is usually about a half to a full percentage point higher than the federal funds rate. The Federal Reserve does control that one. The discount rate is the interest rate the Federal Reserve charges other depository institutions for very short-term (usually overnight) loans.
When people invest your mutual funds they are making loans to banks and their investments are insured by the FDIC is this true or false?
Mutual funds accounts are not insured by the Federal Deposit Insurance Corporation. The FDIC only insures bank accounts (i.e., checking accounts and savings accounts, not mutual funds accounts). Anyone who invests in mutual funds is taking a certain amount of risk. Those funds can (and usually do) increase in value, but they can also decrease in value. If they decrease in value, that money is not going to be repaid by insurance. It is simply lost.
What are federal pass through funds?
Federal pass through funds are grants given to one organization to be passed through directly into the hands of another group. This is often done when the group that actually needs the funds cannot be funded directly by federal funds.
Congress has the ability to appropriate funds to be spent by the federal government.?
Congress has the ability to appropriate funds to be spent by the federal government.
Can federal money go to helping abortions?
Federal law prohibits federal funds including Medicaid funds, from being used to pay for an elective abortion
What did the 1996 Single Audit Act Amendments change about how federal funds trigger an audit?
Audit requirements are triggered by federal funds expended rather than funds received
Who funds TRICARE?
federal government.
