Federal funds rate

Federal funds rate,

Definition of Federal funds rate:

  1. Federal funds rate is the target interest rate set by the Federal Open Market Committee (FOMC) at which commercial banks borrow and lend their excess reserves to each other overnight.

  2. The Federal Open Market Committee (FOMC), the monetary policy-making body of the Federal Reserve System, meets eight times a year to set the federal funds rate.

  3. The rate at which funds are loaned between Federal Reserve depository institutions on an overnight basis. Often referred to as Fed funds rate.

How to use Federal funds rate in a sentence?

  1. FOMC sets a target federal funds rate eight times a year, based on prevailing economic conditions.
  2. The federal funds rate can influence short-term rates on consumer loans and credit cards as well as impact the stock market.
  3. Federal funds rate is the target interest rate set by the FOMC at which commercial banks borrow and lend their excess reserves to each other overnight.

Meaning of Federal funds rate & Federal funds rate Definition

Federal Funds Rate,

Federal Funds Rate:

  1. The federal funds rate is a target rate set by the Federal Open Market Committee (FOMC) at which commercial banks borrow overnight and lend their surplus to each other.

    • The federal funds rate is the target rate set by the FOMC at which commercial banks borrow and lend their excess reserves overnight.
    • The FOMC sets federal funding targets eight times a year, depending on current economic conditions.
    • Federal funds rates can affect consumer loans and credit cards, as well as short-term interest rates on the stock market.

  2. Federal Funds Rate means: The rate at which a custodian gives instant funds (Federal Reserve funds) to another guard overnight. Note: Federal funds rates are often confused with discount rates. This is the interest rate that the Federal Reserve receives on loans from the Federal Reserve Bank. But they are not the same.

  3. Banks of interest charge each other for the daily use of additional reserves.

Literal Meanings of Federal Funds Rate

Federal:

Meanings of Federal:
  1. It has had or is affiliated with a system of government in which several states form a single unit, but remain independent in domestic affairs.

Sentences of Federal
  1. The agreement of the Russian Federation divides the power between the federal and local governments of Russia

Funds:

Meanings of Funds:
  1. The amount of savings or money available for a specific purpose.

  2. Pay for a specific purpose.

Sentences of Funds
  1. Created a fund to coordinate economic investment

  2. The World Bank refused to finance the project

Synonyms of Funds

collection, kitty, reserve, pool, purse, finance, pay for, back, capitalize, sponsor, provide capital for, provide finance for, put up the money for, subsidize, underwrite, endow, support, be a patron of, float, maintain

Rate:

Meanings of Rate:
  1. Size, quantity, or frequency are usually measured in terms of another quantity or measure.

Sentences of Rate
  1. The show has seemed a bit unfocused in recent episodes

Synonyms of Rate

charge, price, cost, tariff, hire, fare, figure, amount, outlay, assess, evaluate, appraise, weigh up, judge, estimate, calculate, compute, gauge, measure, adjudge, value, put a value on