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Smart Reasoning:

C&E

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Qaagi - Book of Why

Causes

Effects

For example , an open market purchase increases the reserve supplycausingthe federal funds rate to fall

Most meetingsresultin no change to the federal funds rate

the Federal Funds Rate An open market purchasecausesthe federal funds rate to fall

An open market purchasecausesthe federal funds rate to fall

_ _ _ _ _ _ _ of reservescausesthe federal funds rate to fall

_ _ of reservescausesthe federal funds rate to fall

If the Fed wants to lower inflation , they will wantto setthe federal funds rate higher

This could lead to a rise in inflationresultingin an increase in the federal funds rate

largely expectedto resultin an increase in the federal funds rate

A rising CPImay then resultin an increase in the Federal Funds Rate

who then pay for the securities by withdrawing funds from the member banksthereby causingan increase in the federal funds rate

Lower growth and lower inflationleadto a lower federal funds rate

the Federal Reservesettingfederal funds rate higher

the Fedsetsa high federal funds rate

an economycausingthe federal funds rate to rise

A reduction in the discount ratewill always resultin a reduction in the federal funds rate

the Discount Rate ... in turncausesthe Federal Funds Rate to rise

an open market salecausesthe federal funds rate to rise

The Fed engages in open market sales which makes reserves more scarcethus causingthe Federal Funds Rate to rise

the commercial banking systemcausingthe federal funds rate to rise

The Fed engages in open market purchases which makes reserves more plentifulthus causingthe Federal Funds Rate to rise

other policieswill causethe federal funds rate to decrease

banks are able to lendcausinga decrease in the federal funds rate

the Federal ReservesetFFR % ( Federal Funds rate %

the federal funds marketleadsto the lowering of the federal funds rate

the federal open market committee ( fomc ) , which is part of the federal reserve(passive) is set byfederal funds rate

The Fedcauseda massive increase in the Federal Funds Rate

Fedcauseda massive increase in the Federal Funds Rate

The FedsetsFederal Funds rates

When the financial crisis hit in 2008 , the Federal Reserve Open Market Committee , or the Fedsetthe federal funds rate

The Federal Reserves Open Market Committeesetsthe federal funds rate

the Federal Reserve uses open market operationsto influencethe federal funds rate

The Federal Reserves Open Market Committee ... the target funds ratesetsthe federal funds rate

the Federal Reserve of the prime rate(passive) set bythe federal funds rate

the first rate increase by the Federal Open Market Committeesetsthe federal funds rate

the Federal Open Market Committeesetsthe federal funds rate

the Federal Open Market Committee(passive) is set byThe federal funds rate

the Chairman of the Federal Reserve and changes to this rate(passive) is set byThe Federal Funds Rate

When the Federal Open Market Committee meets ... , theto setthe federal funds rate

When the Federal Open Market Committee meetsto setthe federal funds rate

to an interest rate decrease for borrowerswill leadto an interest rate decrease for borrowers

what banks charge for consumer loans including mortgagesinfluenceswhat banks charge for consumer loans including mortgages

alsocan setalso

mortgage ratesdo ... influencemortgage rates

mortgage ratesinfluencemortgage rates

money(passive) caused bymoney

an equal change in the Prime Rate , which is the lowest interest rate for commercial borrowing and serves as an index for credit card lenderscausesan equal change in the Prime Rate , which is the lowest interest rate for commercial borrowing and serves as an index for credit card lenders

inflationwould ... causeinflation

to an increase in long term interest ratesleadsto an increase in long term interest rates

other short - term ( and to a lesser extent long - term ) interest rates to risecausesother short - term ( and to a lesser extent long - term ) interest rates to rise

directly to an increase in the rates being offered by new corporate bonds and preferred stocksleadsdirectly to an increase in the rates being offered by new corporate bonds and preferred stocks

in an increase in LIBORwould ... resultin an increase in LIBOR

a decline in goldwould causea decline in gold

to an increase in the rates being offered by new corporate bonds and high quality preferred stocks ( which are currently yielding an average of 7.7 %will lead almost directlyto an increase in the rates being offered by new corporate bonds and high quality preferred stocks ( which are currently yielding an average of 7.7 %

usuallyleadsusually

Mortgage rates(passive) are influenced byMortgage rates

longer - term interest ratesto influencelonger - term interest rates

other financial market variables such as money market rates , long - term interest rates , credit spreads , stock prices and the value of the dollarinfluencesother financial market variables such as money market rates , long - term interest rates , credit spreads , stock prices and the value of the dollar

The discount rate(passive) is setThe discount rate

to increases in the cost of borrowing over the long - termeventually leadto increases in the cost of borrowing over the long - term

to the decrease in the short - term interest rates , which promotes consumer spendingleadsto the decrease in the short - term interest rates , which promotes consumer spending

to a decline in the P / E ratio through an increase in the required rate of returnwould leadto a decline in the P / E ratio through an increase in the required rate of return

in increases to 30-year - fixed mortgage ratesmay therefore resultin increases to 30-year - fixed mortgage rates

an expansion of the money supplycausedan expansion of the money supply

to lower interest ratesleadto lower interest rates

alsocausealso

in significant market volatility and financial stability consequences that go well beyond U.S. borderscould ... resultin significant market volatility and financial stability consequences that go well beyond U.S. borders

alsowould ... resultalso

the economy to shoot aheadcausingthe economy to shoot ahead

the money supplyto influencethe money supply

the money supplyto influencethe money supply

to lower interest rates overallleadingto lower interest rates overall

alsocausealso

the prime rate banks use as benchmark in setting rates for consumer loansinfluencesthe prime rate banks use as benchmark in setting rates for consumer loans

longer - term interest rates such as mortgages , loans , and savings ratesinfluenceslonger - term interest rates such as mortgages , loans , and savings rates

the prime rate , which in turn has a bearing on rates that lenders charge for consumer and corporate borrowinginfluencesthe prime rate , which in turn has a bearing on rates that lenders charge for consumer and corporate borrowing

what banks charge for consumer loans including mortgagesinfluenceswhat banks charge for consumer loans including mortgages

longer- term interest rates such as mortgages , loans , and savings , How it?s usedinfluenceslonger- term interest rates such as mortgages , loans , and savings , How it?s used

longer- term interest rates such as mortgages , loans , and savings , all of which are influenceslonger- term interest rates such as mortgages , loans , and savings , all of which are

to Lower ratesleadsto Lower rates

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Smart Reasoning:

C&E

See more*