What is meant by the “Federal funds market” and what is the Federal funds rate?
What will be an ideal response?
When financial institutions find themselves temporarily short of reserves, they can borrow from other institutions’ reserves on an overnight or very short-term basis. The supply and demand for such reserve funds is known as the Federal funds market and the rate at which these funds are borrowed is the Federal funds rate.
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Assume that Figure 4-16 shows the supply of steak. An increase in the price of pork will change the supply from
a. S1to S2. b. S2to S1. c. S2to S3. d. S1to S3.
Governments seeking to maximize total tax revenue will place unit taxes on goods with the
a. b and c b. lowest income elasticity c. highest cross elasticity d. lowest price elasticity e. fewest complements
The antitrust laws are enforced by government agencies such as the Federal Trade Commission and the Department of Justice.
Answer the following statement true (T) or false (F)
In which of the following would the richest tenth of the population be most likely to receive the highest percentage of the country's income?
A. The United States. B. Japan. C. The United Kingdom. D. Namibia.