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| Topic: |
Business
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| Number of pages / Number of words: |
12 / 3134 |
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The Fed has the authority to set reserve requirements on checking accounts and certain types of savings accounts. Lastly, the discount rate is the interest the Federal Reserve Banks charge on the loans they grant to commercial banks. Changes in the discount rate typically occur in conjunction with changes in the federal funds rate...
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Changes in the discount rate typically occur in conjunction with changes in the federal funds rate. Through the discount rate, Federal Reserve Banks lend funds to depository institutions. All depository institutions that maintain transaction accounts or non-personal deposits subject to reserve requirements are entitled to borrow at the discount rate...
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