* | Money Rates Assignment (1) - WordPadCloseFileHomeViewX CutA^ A°FindArial18СоpyacReplacePastePicturePaintDate and InsertBIU abe X, X' A · 2Select alldrawingtimeobjectClipboardFontParagraphInsertEditingWordPad does not support all of the features of this document's format. Some content might be missing or displayed improperly.X1235Money RatesTerm: Prime Rate%Prime rates[ U.S. Effective Date:52-WEEKLateWk agoHighU.S.CanadaEuro zoneJapanSwitzerlandBritainAustraliaWhat it means: The prime rate is the rate at which banks will lend money to their most-favored customers. The prime rate will move up or down in lock step with changes by theFederal Reserve Board.How it's used: The prime rate is an important index used by banks to set rates on manyconsumer loan products, such as credit cards or auto loans. If you see that the prime ratehas gone up, your variable credit card rate will soon follow.Source:Source:100%Kaleb L12:48 PMe Type here to search4/12/2021II * | Money Rates Assignment (1) - WordPadFileHomeViewX CutA^ A°FindArial12СоpyacReplacePastePicturePaintDate and InsertBIU abe X, X' A · 2Select alldrawingtimeobjectClipboardFontParagraphInsertEditingWordPad does not support all of the features of this document's format. Some content might be missing or displayed improperly.X1235Term: Discount Rate%Discount [ Effective Date:52-WEEKLatestWk agoHighLowWhat it means: The discount rate is the interest rate at which an eligible financial institutionmay borrow funds directly from a Federal Reserve bank. Banks whose reserves dip below thereserve requirement set by the Federal Reserve's board of governors use that money tocorrect their shortage. The board of directors of each reserve bank sets the discount rateevery 14 days. It's considered the last resort for banks, which usually borrow from eachother.How it's used: The Fed uses the discount rate to control the supply of available funds, whichin turn influences inflation and overall interest rates. The more money available, the morelikely inflation will occur. Raising the rate makes it more expensive to borrow from the Fed.That lowers the supply of available money, which increases the short-term interest rates.Lowering the rate has the opposite effect, bringing short-term interest rates down.Source:Source:Term: Federal FundsHigh:Low:Near closing bid:%-te.100%Kaleb L12:49 PMe Type here to search4/12/2021II

The term federal funds rate refers to the rate of interest that the bank charges to other banks for…

Money Rates Term: Prime Rate % Prime rates[ U.S. Effective Date: 52-WEEK Latest Wk ago High Low U.S. Canada Euro zone Japan Switzerland Britain Australia What it moa nc: Th e prim e rato ic the rate at which banke will lo nd mo noy to their moct

Money Rates Term: Prime Rate % Prime rates[ U.S. Effective Date: 52-WEEK Latest Wk ago High Low U.S. Canada Euro zone Japan Switzerland Britain Australia What it moa nc: Th e prim e rato ic the rate at which banke will lo nd mo noy to their moct

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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* | Money Rates Assignment (1) - WordPad
Close
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18
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ac
Replace
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Paint
Date and Insert
BIU abe X, X' A · 2
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drawing
time
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WordPad does not support all of the features of this document's format. Some content might be missing or displayed improperly.
X
1
2
3
5
Money Rates
Term: Prime Rate
%
Prime rates[ U.S. Effective Date:
52-WEEK
Late
Wk ago
High
U.S.
Canada
Euro zone
Japan
Switzerland
Britain
Australia
What it means: The prime rate is the rate at which banks will lend money to their most-
favored customers. The prime rate will move up or down in lock step with changes by the
Federal Reserve Board.
How it's used: The prime rate is an important index used by banks to set rates on many
consumer loan products, such as credit cards or auto loans. If you see that the prime rate
has gone up, your variable credit card rate will soon follow.
Source:
Source:
100%
Kaleb L
12:48 PM
e Type here to search
4/12/2021
II

* | Money Rates Assignment (1) - WordPad
File
Home
View
X Cut
A^ A°
Find
Arial
12
Соpy
ac
Replace
Paste
Picture
Paint
Date and Insert
BIU abe X, X' A · 2
Select all
drawing
time
object
Clipboard
Font
Paragraph
Insert
Editing
WordPad does not support all of the features of this document's format. Some content might be missing or displayed improperly.
X
1
2
3
5
Term: Discount Rate
%
Discount [ Effective Date:
52-WEEK
Latest
Wk ago
High
Low
What it means: The discount rate is the interest rate at which an eligible financial institution
may borrow funds directly from a Federal Reserve bank. Banks whose reserves dip below the
reserve requirement set by the Federal Reserve's board of governors use that money to
correct their shortage. The board of directors of each reserve bank sets the discount rate
every 14 days. It's considered the last resort for banks, which usually borrow from each
other.
How it's used: The Fed uses the discount rate to control the supply of available funds, which
in turn influences inflation and overall interest rates. The more money available, the more
likely inflation will occur. Raising the rate makes it more expensive to borrow from the Fed.
That lowers the supply of available money, which increases the short-term interest rates.
Lowering the rate has the opposite effect, bringing short-term interest rates down.
Source:
Source:
Term: Federal Funds
High:
Low:
Near closing bid:
%
-te.
100%
Kaleb L
12:49 PM
e Type here to search
4/12/2021
II

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