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Key Rate

Key Rate

What is 'Key Rate'

The specific interest rate that determines bank lending rates and the cost of credit for borrowers. The two key interest rates in the United States are the discount rate and the Federal Funds rate.

Explaining 'Key Rate'

The key rates are one of the chief tools used by the Federal Reserve system to implement monetary policy. When the Fed wants to expand the money supply, it will typically lower one or both key rates in order to decrease the cost of borrowing. When the Fed is in a contractionary phase, it will raise the rates to increase the cost of borrowing.


Further Reading

An empirical comparison of published replication research in accounting, economics, finance, management, and marketingAn empirical comparison of published replication research in accounting, economics, finance, management, and marketing
www.sciencedirect.com [PDF]
… is empirical generalization, and replication and extension research is the key to generalization … partially support, or conflict with their predecessors among the accounting, economics, finance, manage- ment, and … statis- tics and CRSP tapes will produce a higher rate of supportive …

Exchange rate economics: where do we stand?Exchange rate economics: where do we stand?
www.sciencedirect.com [PDF]
… is empirical generalization, and replication and extension research is the key to generalization … partially support, or conflict with their predecessors among the accounting, economics, finance, manage- ment, and … statis- tics and CRSP tapes will produce a higher rate of supportive …

International monetary and financial economicsInternational monetary and financial economics
epublications.marquette.edu [PDF]
… is empirical generalization, and replication and extension research is the key to generalization … partially support, or conflict with their predecessors among the accounting, economics, finance, manage- ment, and … statis- tics and CRSP tapes will produce a higher rate of supportive …

LIBOR: Origins, economics, crisis, scandal, and reformLIBOR: Origins, economics, crisis, scandal, and reform
papers.ssrn.com [PDF]
… is empirical generalization, and replication and extension research is the key to generalization … partially support, or conflict with their predecessors among the accounting, economics, finance, manage- ment, and … statis- tics and CRSP tapes will produce a higher rate of supportive …


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