All language subtitles for 1_foda0010sasdasd

between themselves is so they
you know they encourage people

I don't mean of course I mean
the banks. They encourage more

ah when we start looking at the
indicators that they actually

Anyways guys we're going to be
looking at this in more detail

of the banks to trade between
themselves, borrow and lend.

to have more transactions
between between themselves. And

bank to trade with with each
other by borrowing and lending

of course. So the whole reason
why the Fed actually charges

the Fed actually want is a free
flow in market. They want each

usually a higher rate than what
other banks would charge

higher as they want to
encourage transactions between

the banks directly. So just to
explain that a bit further what

charges banks to borrow from
them directly. This is usually

it's called which is the
interest rate that the Fed

going to go to the Fed
themselves. So the Fed is you

know the central bank they're
they're the people right at the

They can be if a bank required
funds from the Fed themselves.

lending between the banks. And
is the Fed involved in this?

top and then you've got the
more private banks that are

in all the banks is called the
effective federal funds rate.

going to the other banks and
looking to borrow that bank is

two banks negotiate an
appropriate rate. Obviously,

So let's just say for example
rather than one bank actually

this is between them and the
average rate across the board

obviously lower than than them.
And the Fed a discount rate

Essentially, the Fed Funds rate
is all about the rate range of

uphold the appropriate amount
of reserve requirements. The

correctly, banks will borrow
and lend from each other to

lender bank can charge the
borrowing bank. If you remember

suggestion for the banks for a
range of interest rates that

So some important info to know.
The Fed Funds rate is a

the rate at which it costs
banks to borrow as set by fed.

say between 0. 5% and 1%
whereas the interest rate is

that banks can lend to each
other so it could be let's just

that we're going to be looking
at in terms of our Fed funds

rate indicators but I hope I've
made it clear what the

difference actually is so the
Fed funds rate is the range

durable goods goods order
report these are the two points

Fed funds rate influenced by
the co-inflation rate and

fiscal policies, they meet
eight times a to determine the

to see what they can do about
their monetary policies, about

Fed actually meets to discuss
the economy and what's going on

what if you don't know what
that is it's where you know the

consumer loans, credit loans
and the stock market are

heavily affected by these Fed
funds rate. FOMC if you know

rates are very sensitive to
these changes. So that means

to legally own you know as a
reserve. Short term interest

costs banks to borrow as set by
the Fed. However, what

and borrow to each other in
terms of of rate that they have

rates is the Fed funds rate is
a range that the banks can lend

differentiates the the Fed
funds rate and the interest

interest rates. The interest
rates are the rate at which it

This is the federal funds rate.
So to not cause confusion,

there's a difference between
the Fed funds rate and the

single transaction and that's
exactly what we look for here.

you're always going to have a
bit of interest rate on every

in reserve. Therefore you know
of course with any transaction

that occurs in the economic
economic sort of industry

they would have to borrow from
other banks who have a lot more

uphold this requirement. So
what that means is at times

capital or cash in hand with
them and every bank has to

and pretty much all banks even
to have a certain amount of

and the discount rate and also
establishing reserve

purchases of bonds. There was
the setting of interest rates

into play. The government
actually requires certain banks

policies. If you remember there
were three types. There was the

requirements. Now that's where
the reserve requirements come

balances on an overnight basis.
So if you if you refer back to

one of the lessons that are
taught about the monetary

other banks for lending them
excess cash from their reserve

fund rate refers to the
interest rate that banks charge

be looking at right now is a
federal fund rate. The federal

section of the fundamental
course. So what we're going to

Yes, hello everyone. Welcome to
the first video of the third

look at to determine the Fed
fund rate.