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Home Dictionary O Open Mouth Operations Open mouth operations are broadcast where the Fed or central bank thinks interest rates and inflation should be in the short to medium term. Open transactions could cause markets to react, which could lead to interest rate adjustments without the need for central bank action. If the market reaction does not affect interest rates and inflation, the Fed may take steps, including changing the federal funds rate and open market operations (OMO). Alan Greenspan
September 25, 2022 Alan Greenspan is an American economist and former chairman of the Federal Reserve. Ben Bernanke
September 25, 2022 Ben Bernanke - former chairman of the Federal Reserve from 2006 to 2014. Blended Rate
September 25, 2022 The compound rate is the interest rate charged on a loan, which is a combination of the previous rate and the new rate. Dove
September 25, 2022 Pigeons are believed to be more interested in stimulating job growth through low interest rates than in controlling inflation. Euro Interbank Offer Rate (Euribor)
September 25, 2022 Euribor is the interbank overnight rate, which consists of the average interest rates of a number of major European banks, which are used to lend to each other in euros. Expansionary Policy
September 25, 2022 Expansionary policies are aimed at stimulating the economy by increasing demand through monetary and fiscal stimulus. Expectations Theory
September 25, 2022 Expectancy theory predicts future short-term interest rates based on current long-term interest rates. Federal Discount Rate
September 25, 2022 The federal discount rate is the interest rate that the Federal Reserve System (FRS) charges banks for borrowing money from the Federal Reserve Bank. Federal Funds
September 25, 2022 Federal funds refer to excess reserves held by financial institutions in excess of the central bank’s mandatory reserve requirements. Federal Funds Rate
September 25, 2022 The federal funds rate is the target interest rate set by the FOMC. Federal Open Market Committee (FOMC)
September 25, 2022 The Federal Open Market Committee is a division of the Federal Reserve System. Federal Open Market Committee Meeting (FOMC Meeting)
September 25, 2022 The Federal Open Market Committee is a division of the Federal Reserve System. Federal Reserve Act
September 25, 2022 The Federal Reserve Act of 1913 created the Federal Reserve System, known simply as the “Fed”. Federal Reserve Bank
September 25, 2022 The Federal Reserve System is the central bank and monetary authority of the United States. Federal Reserve Board (FRB)
September 25, 2022 The Federal Reserve Board (FRB) is the governing body of the Federal Reserve System, America’s central bank. Federal Reserve System (FRS)
September 25, 2022 The Federal Reserve System (FRS), also known as the Fed, is the central bank of the United States. Fisher Effect
September 25, 2022 The Fisher Effect is an economic theory created by economist Irving Fisher that describes the relationship between inflation and real and nominal interest rates. Float
September 25, 2022 The float is essentially money with a double account: the amount paid, which, due to delays in processing, appears simultaneously in the accounts of the payer and the payee. Guaranteed Investment (Interest) Certificate (GIC)
September 25, 2022 A Guaranteed Investment Certificate (GIC) is an investment sold by Canadian financial institutions. Hawk
September 25, 2022 Hawks are politicians and advisers who advocate higher interest rates to keep inflation in check. Interbank Rate
September 25, 2022 The Interbank Rate, also known as the Federal Funds Rate, is the interest charged on short-term loans made between financial institutions. Interest Rate Derivative
September 25, 2022 An interest rate derivative is a financial contract whose value is based on some underlying interest rate or interest-bearing asset. Interest Rate Parity
September 25, 2022 Interest rate parity is the fundamental equation that governs the relationship between interest rates and exchange rates. Interest Rate Sensitivity
September 25, 2022 Interest rate sensitivity measures how much the price of a fixed income asset changes when the interest rate changes. Key Rate
September 25, 2022 The key rate determines the lending rates for banks, as well as the cost of a loan for borrowers.