The 'fed' and interest rates throughout the US
Not what you're looking for?
How does the Federal Reserve affect interest rates that are charged by banks for loans?
Purchase this Solution
Solution Summary
The solution explains how the FOMC influences interest rates at all public financing institutions in the US. The 280 word explanation provides a decent summary for the process in which interest rates are changed.
Solution Preview
When the 'fed' raises interest rates, the banks who borrow from the fed, must pay a higher rate of interest for their loans. They in turn figure out how much the prime rate needs to go up in order for their banks to maintain the profit spread.
The prime rate is the rate at which banks lend to their very best customers, and these are commercial loans, not mortgage-backed loans. After ...
Purchase this Solution
Free BrainMass Quizzes
Introduction to Finance
This quiz test introductory finance topics.
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.