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Simple English definitions for legal terms

fed funds

Read a random definition: United States Postal Service

A quick definition of fed funds:

Term: FED FUNDS

Definition: Fed funds refer to the money that banks lend to each other overnight to meet their reserve requirements. The interest rate at which these transactions occur is called the federal funds rate. This rate is set by the Federal Reserve and is used as a tool to control the money supply and stabilize the economy. Essentially, the fed funds market is where banks borrow and lend money to each other to maintain their required reserves and keep the financial system functioning smoothly.

A more thorough explanation:

Fed Funds

Fed Funds refer to the Federal Funds Rate, which is the interest rate at which banks lend and borrow money from each other overnight to meet their reserve requirements set by the Federal Reserve.

For example, if Bank A has excess reserves and Bank B needs to borrow money to meet its reserve requirements, Bank B can borrow from Bank A at the Fed Funds Rate. The Fed Funds Rate is set by the Federal Reserve and is used as a benchmark for other interest rates, such as the Prime Rate and the LIBOR.

Another example is when the Federal Reserve wants to increase the money supply in the economy, it can lower the Fed Funds Rate, making it cheaper for banks to borrow money and increasing the amount of money available for lending.

The examples illustrate how the Fed Funds Rate works and its importance in the banking system and the economy. Banks use the Fed Funds Rate to manage their reserves and meet their obligations, while the Federal Reserve uses it to influence the money supply and the overall level of economic activity.

federation | fed-funds rate

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THATS SO FUNNY
i cant i would go crazy
JumpySubsequentDolphin
20:50
i need to know who decided to do that.
JumpySubsequentDolphin
20:50
omg im on a plane weeeee
the devil
youre on a plane??? LSD made the mile high club??
20:50
yo splitterus are you in school already
20:50
it says ur c/o 2027
JumpySubsequentDolphin
20:51
@SplitterusClitterus: HAHAH yes
ur user is hilarioussss and no i just graduated this may and am now applying ---also im out of messages so ill take a lil
20:52
roger dat. see u in heck
im back, r u applying this cycle too
JumpySubsequentDolphin
21:32
this child fell asleep on me
JumpySubsequentDolphin
21:32
im so uncomfortable
just push him off the entire seat
JumpySubsequentDolphin
21:34
LMAOOOO
JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
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