2006-07-18 00:26:15 · 3 answers · asked by doug h 1 in Business & Finance ➔ Investing
Supply and demand. In this case the supply and demand for money. Additional direction is supplied by the Federal Reserve.
2006-07-18 00:55:15 · answer #1 · answered by Common Sense 7 · 0⤊ 0⤋
Are you talking about a money fund or a CD or a Treasury or a debt instrument?
All rates that are not determined by the markets, but tied to the banks and the Fed, are keyed on the Prime Rate, which is controlled by the Fed, and as you've heard, has been raised 17 times consecutively.
Here's an interesting article that just came out today on mortgage rates and Treasurys.
http://www.marketwatch.com/News/Story/Story.aspx?guid={DD673502-5EFE-45D3-AD0D-155946DA6F93}&siteid=mktw&dist=nbc
2006-07-18 15:27:16 · answer #2 · answered by dredude52 6 · 0⤊ 0⤋
Bank interest rate are based off of the Federal Interest Rate. The federal reserve acts as the bank of banks, and the banks change their rates to reflect how much interest the government is paying them. The federal interest rate is changed periodically by the government based on many factors having to do with the economy.
2006-07-18 07:32:26 · answer #3 · answered by swingtrader912 4 · 0⤊ 0⤋