Why does the Federal Reserve rarely use the discount rate to implement its monetary policy?
Answer to relevant QuestionsWhat changes did the Fed implement to its discount window lending policy in the early 2000s? In the late 2000s?Suppose the Federal Reserve instructs the Trading Desk to purchase $ 1 billion of securities. Show the result of this transaction on the balance sheets of the Federal Reserve System and commercial banks.The FOMC has instructed the FRBNY Trading Desk to purchase $ 750 million in U. S. Treasury securities. The Federal Reserve has currently set the reserve requirement at 10 percent of transaction deposits. Assume U.S. banks ...What is the primary risk of trading in the fed funds markets? How did this risk come into play during the financial crisis of 2008–2009?What are Eurodollar CDs and Euro commercial paper?
Post your question