Why is the Federal Funds Rate important?

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Why is the Federal Funds Rate important?

2006-09-25 02:55:45 · 2 answers · asked by Nes 1 in Education & Reference ➔ Homework Help

2 answers

The Feds rate is the rate upon which interest rates for many other loads are based, such as mortgages, car loans, and even savings rates.

2006-09-25 03:03:21 · answer #1 · answered by IT Pro 6 · 0⤊ 0⤋

http://en.wikipedia.org/wiki/Federal_funds_rate

http://www.econmodel.com/classic/terms/fedfunds.htm

The Federal Funds rate is the interest rate on overnight loans between banks. These loans are most often used to satisfy the reserve requirement.

http://www.answers.com/topic/federal-funds-rate

2006-09-25 03:00:22 · answer #2 · answered by Anonymous · 0⤊ 0⤋