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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
ENGR.ECONOMIC ANALYSIS
14th Edition
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 File Home View X Cut A^ A° Find Arial 18 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 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
Transcribed Image Text:* | Money Rates Assignment (1) - WordPad Close File Home View X Cut A^ A° Find Arial 18 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 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
Transcribed Image Text:* | 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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