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Fed Interest Rate

One of Federal Reserve Bank's roles is to lessen financial crises by acting as a lender of last resort. The Fed is supposed to stand ready to provide fresh reserves to banks in need of cash. This lending is done through the discount window. The interest rate that the Fed charges banks for these reserves is called the discount rate. This is the only rate the Fed sets. The discount rate is not as important as the Fed rate because very few banks got to the Fed to borrow money. The only case that a bank would go to the Fed is when its about to collapse and it's the last resort. B



Some common words found in the essay are:
Federal Fund, Reserve Bank's, , fed trying, rate fed, discount rate, borrow money, consumer spending, rate cut,
Approximate Word count = 409
Approximate Pages = 2 (250 words per page double spaced)

  

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