Why does the Fed not use the discount rate to conduct monetary policy? How does the Fed
Question:
Why does the Fed not use the discount rate to conduct monetary policy? How does the Fed use the discount rate?
Discount RateDepending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
In the early 20th century long before modern money markets evolved discounting was a common way to r...View the full answer
Answered By
Muhammad Rehan
Enjoy testing and can find bugs easily and help improve the product quality.
10+ Reviews
10+ Question Solved
Related Book For 
Financial Institutions, Markets and Money
ISBN: 978-1119330363
12th edition
Authors: David S. Kidwell, David W. Blackwell, David A. Whidbee, Richard W. Sias
Question Posted:
