Question
Visit the Federal Reserve Bank of St. Louis websites for (a) the Prime lending rate (the rate at which bank loan money to their preferred
Visit the Federal Reserve Bank of St. Louis websites for (a) the Prime lending rate (the rate at which bank loan money to their preferred customers) and (b) the Federal Funds rate (the interest rate at which depository institutions trade federal funds with each other overnight).
- https://fred.stlouisfed.org/series/PRIME
- https://fred.stlouisfed.org/series/FEDFUNDS
- Observe the movement of the two rates over time, (e.g., since 2007).
- Is there a relationship between the changes in the federal funds rate and the prime lending rate? Why? How much is the difference? Does this hold true for the most recent changes by the Fed?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Principles Of Macroeconomics
Authors: N Gregory Mankiw
8th Edition
1305971507, 9781305971509
