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If the Federal Reserve Bank of New York plans on raising interest rates at some point in the near future it will change the "fed funds" rate on overnight bank loans.
Wiki User
∙ 10y ago
Wiki User
∙ 12y agoeconomic activity slows because at high interest rates, businesses are less willing to borrow, this kind of policy is enacted if the fed feels that inflation is getting out of hand.
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What happens to money supply when the fed raises the reserve requirement?
tibor and owen
How does a change in discount rate change the money supply?
The Federal Reserve raises the rate in order to encourage banks to lend less.
How are bond prices affected when the Federal Reserve lowers the interest rate?
When the Federal Reserve lowers interest rates, the value of outstanding bonds will increase. The increase in the value of bonds is due to the market price of the bonds adjusting to reflect the lower interest rates available on new bonds. Investors with bond holdings enjoy an increase in the value of their holdings when the Fed cuts rates. However, new investors in bonds will receive a lower rate of interest and if the Fed later raises rates, bond investors will experience a decrease in the market value of their bonds.
Economic Growth More Rapid Than Predicted Fearing Instability Fed Raises Interest Rates Banks Protest Increased Discount Rate What monetary policy strategy of the Federal Reserve do these headlines re?
Decreasing the money supply to slow the economy
What is the chief way the federal government raises revenue?
Individual income taxes. @DJSCREAM21
What happens to money supply when the fed raises the reserve requirement?
tibor and owen
When the federal reserve raises interest rates how does it affect the economy?
it increase their customers money by a greater margin than before so it may help the economy start running again so people will start buying again
How does a change in discount rate change the money supply?
The Federal Reserve raises the rate in order to encourage banks to lend less.
How are bond prices affected when the Federal Reserve lowers the interest rate?
When the Federal Reserve lowers interest rates, the value of outstanding bonds will increase. The increase in the value of bonds is due to the market price of the bonds adjusting to reflect the lower interest rates available on new bonds. Investors with bond holdings enjoy an increase in the value of their holdings when the Fed cuts rates. However, new investors in bonds will receive a lower rate of interest and if the Fed later raises rates, bond investors will experience a decrease in the market value of their bonds.
Economic Growth More Rapid Than Predicted Fearing Instability Fed Raises Interest Rates Banks Protest Increased Discount Rate What monetary policy strategy of the Federal Reserve do these headlines re?
Decreasing the money supply to slow the economy
What happens to the present value of an annuity when the interest rate raises?
decreases towards the future value faster
Who raises and funds the military?
The federal government i think
Which federal tax raises the largest amount of money each year?
Federal Income tax is the largest tax for the government, it raises more money then anything else.
Why does the government sometimes raises interest rates?
To rate paid for investments
What happens if bread raises too long?
nothing
Which tax raises the most revenue for the federal government?
personal income tax
What happens to our heart rate when you undergo vigorous exercise?
it raises
