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It influences bank behavior in order to control the money supply.

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6y ago
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Related questions

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


Which term refers to the rate of interest the Federal Reserve Bank charges member banks?

Discount 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.


What is the rate of interest the Federal Reserve Bank charges member banks called?

discount rate


The rate of interest the Federal Reserve Bank charges member banks is called the .?

Discount rate


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.


Which bank refers to the rate of interest the federal reserve bank charges member banks?

discount rate


A tool often used by the Federal Reserve to stimulate borrowing and spending is to?

decrease the discount rate to banks-decrease the discount rate to banks.(:


Should in periods of inflation the federal reserve raise or lower the discount rate?

lower