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What does policy rate mean?

Updated: 4/28/2022
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14y ago

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In economics, the policy rate (policy interest rate) is the short-term interest rate that the central bank manipulates through open-market operations. Open-market operations include the sale and purchase of bonds.

During times of recession, the central bank favors a low policy rate that would help close the GDP gap. When a country is experiencing heavy economic growth, the central bank tends to favor a higher policy rate that would curb inflation.

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What does consent to rate mean on a property insurance policy in North Carolina?

That's permission to give you a price for the policy. They meed to rate it in order to quote you the price it will cost. The company is required to rate the risk according to your states regulations and it's filings.


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Policy rate is the rate of interest that banks charge. It can be a rate charged from credit cards, insurance policies, savings accounts, checking accounts, or other similar things.


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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.


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What was the impact of one child policy on infant mortality rate?

infant mortality rate is not related to one child policy because the policy does not allow to kill the new born baby. You should ask about the abortion rate. Also, the policy can't be used if the embryo becomes to a human in mother's uterus.


What is a composite rate in general liability insurance?

This is a rate established at the beginning of a policy period. It is a rate based on the "average" of the same type of classes or work-such as all restaurant work, etc. This type of policy is normally audited at the end of the policy term to adjust for additons or deletions of coverage throughout the policy term.


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