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How does the discount rate affect the decisions of banks in setting their specific interest rates?
Weegy: The discount rate is used in present value calculations, so it's a good measure of what an asset is worth now. Then, the bank would want to look at their core deposits, which can then be used to estimate (to a certain extent) dividend liabilities. [ ] (More)
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Asked 9/10/2012 3:53:28 PM
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How does the discount rate affect the decisions of banks in setting their specific interest rates?
Weegy: The discount rate is the interest rate at which Federal Reserve banks lend reserves to depository institutions, [ primarily to cuahle these institutions to meet their reserve requirements.2 The relationship Vori recent state’nicnt on the importance of the discount ate, see Saol 11. Hvmans, ct a! ‘‘‘the U.S. Outlook for 1982.’’ tscouoioic Outlook (‘NA )\Vinter 1982), p.3. For a stateiiient ahootthe clis’ count rate as a pivotal rate in tI ... (More)
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Asked 9/10/2012 4:04:09 PM
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