Federal Reserve

1. Define the Federal Funds Rate. What is the current Federal Funds Rate?

2. Define the Federal Reserve Discount Rate. What is the current Federal Reserve Discount Rate?

3. What are the factors cited in this statement that determined the FOMC’s decision of changing (or keeping constant) its target for the federal funds rate?

4. Does the Fed have control over the federal funds rate and over bank reserves? If so, can the Fed control both simultaneously?









Sample Solution