Topic: Effective Fed Funds Rate
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Answers to Common Questions
What is the Fed Funds Rate?
The Federal funds rate is the rate that banks charge each other for overnight loans. The Fed can require banks to keep a certain percentage of assets in the form of cash on hand or deposited in one of the Federal Reserve Banks. Read More »
Source: http://answers.ask.com/Business/Finance/what_is_the_fed_funds_rat...
What is the Current Fed Funds Rate?
The Fed Funds Rate is used by banks and government to control interest rates and inflation. The current rate is 0.25 and was at 1.00 a year ago. Raising this rate makes it more expensive to borrow and lowering it has the opposite effect. Read More »
Source: http://answers.ask.com/Business/Finance/what_is_the_current_fed_f...
What Effect Does the Fed Fund Rate Have on Stock Prices?
The Federal Reserve Board coordinates monetary policy through the federal funds rate. This is the rate banks charge each other for reserve loans, and it influences borrowing costs and the overall economy. Stock prices are affected by intere... Read More »
Source: http://www.ehow.com/facts_6012600_effect-fund-rate-stock-prices_....
More Common Questions
Answers to Other Common Questions
The federal government lends money to banks at a set rate called the federal funds interest rate (fed rate). Although this rate only affects banks that borrow from the government, it can have a trickle-down effect into the stock market.
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Source: http://www.ehow.com/facts_5965064_effect-fed-rate-stocks_.html
Because actions by the Fed can increase or decrease what it costs banks to borrow money, it trickles down into what interest rates the banks charge customers. Typically, banks will set their prime interest rate at three or four points highe...
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Source: http://www.ehow.com/how_4912025_fed-lower-interest-rates.html
The Federal Reserve Board (the Fed) is the central bank of the United States, responsible for the long-term stability and productivity of the economy. Actions of the Fed are monetary policy decisions based on its regular assessments of the ...
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Source: http://www.ehow.com/facts_7212996_fed-affect-mortgage-interest-ra...
Fed rate cuts reduce the cost of borrowing for many consumer and commercial loans. Because of the widespread influence of Fed rate cuts throughout the economy, many people believe that Fed cuts also lower mortgage rates. In reality, Fed cut...
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Source: http://www.ehow.com/about_6676575_effect-rate-cut-mortgage-rates_...
Answer Extracted from http://www.federalreserve.gov/generalinfo/faq/faqmpo.htm What is the federal funds rate, and why does the FOMC raise or lower the target rate? The federal funds rate is the rate charged by one depository institution on...
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Source: http://wiki.answers.com/Q/How_does_FOMC_achieves_Fed_Fund_Rates_t...
They can cut government official's salaries, but that is not likely t...
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Source: http://www.chacha.com/question/how-can-the-fed-increase-the-feder...
The Fed Funds target rate was 6.5 in the year 2000. Thanks for usin... ...MORE...
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Source: http://www.chacha.com/question/what-was-the-fed-fund-rate-during-...
