http://www.xtacash.com/economics/ Just another WordPress weblog Sun, 28 Feb 2010 07:02:08 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.xtacash.com/economics/comment-page-1/#comment-3376 Druid202 Wed, 18 Nov 2009 13:39:07 +0000 http://www.xtacash.com/economics/#comment-3376 basically discounts rate is what the fed charges for a loan to a bank and fed funds rate is rate which is charged by one bank to another. In this situation, banks will go to the fed but even with the same rates sometimes there are other constraints which doesn't allow banks to get a loan with lower interest. basically discounts rate is what the fed charges for a loan to a bank and fed funds rate is rate which is charged by one bank to another. In this situation, banks will go to the fed but even with the same rates sometimes there are other constraints which doesn’t allow banks to get a loan with lower interest.

]]> http://www.xtacash.com/economics/comment-page-1/#comment-3377 wk Wed, 18 Nov 2009 13:14:40 +0000 http://www.xtacash.com/economics/#comment-3377 The Fed Funds rate is used by banks to meet federal reserve requirements. So that means that it cannot borrow from the same entity requiring it to meet a reserve. Discount rate is the rate the the fed charges banks to loan against their paper. The Fed Funds rate is used by banks to meet federal reserve requirements. So that means that it cannot borrow from the same entity requiring it to meet a reserve. Discount rate is the rate the the fed charges banks to loan against their paper.

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