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LSDefine

Simple English definitions for legal terms

fed funds

Read a random definition: Roth v. United States (1957)

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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18:49
thank you my little crow friend
Dkk
18:50
Med law easy done
medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
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