Open-Market Rate

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Dictionary Says

Definition of 'Open-Market Rate'

Rate of interest that is paid on any debt security that trades in the open market. Open-market rates respond directly to changes in supply and demand. Interest rates for such debt instruments as commercial paper and banker's acceptances are open-market rates.
Investopedia Says

Investopedia explains 'Open-Market Rate'

Open-market rates differ from the discount rate and other official rates that are set by the Federal Reserve. These rates apply to any debt instrument that trades in the secondary market. Bank commercial-loan rates do not fall into this category, as they are largely determined by Fed policy.
Search results for

'Open-Market Rate'

  • Fed Open Market Operations And You

    http://stocks.investopedia.com/stock-analysis/2009/Fed-Open-Market-Operations-And-You-TLT-IEF-BSV-TIP0323.aspx
    ... Fed Open Market Operations And You. ... Volcker was head of the Fed when inflation in
    the US rose as high as 13.5% and the federal funds rate peaked at 20% in the ...

  • How The US Government Formulates Monetary Policy

    http://www.investopedia.com/articles/04/050504.asp
    ... By using any of its three methods - open market operations, discount rate or reserve
    requirements - the Federal Reserve becomes directly responsible for ...

  • The Federal Reserve: Monetary Policy | Investopedia

    http://www.investopedia.com/university/thefed/fed3.asp
    ... The Federal Open Market Committee (FOMC) sets a target for this rate, but not the
    actual rate itself (because it is determined by the open market). ...

  • How The Federal Reserve Manages Money Supply

    http://www.investopedia.com/articles/08/fight-recession.asp
    ... to change bank reserves: A change in reserve requirements; A change in the
    discount rate; Open-market operations. The Tools A change ...

  • The Federal Reserve: The FOMC Rate Meeting | Investopedia

    http://www.investopedia.com/university/thefed/fed4.asp
    ... The Fed will do its best to influence open-market operations, but many other
    factors contribute to what the actual rate ends up being. ...

  • How Interest Rate Cuts Affect Consumers

    http://www.investopedia.com/articles/economics/08/interest-rate-affecting-consumers.asp
    ... May 29 2009 | Filed Under ยป Bonds, Credit Cards, Economics. The Federal Open Market
    Committee (FOMC ... when the Fed cuts interest rates, but does a rate cut equal ...

  • The Federal Reserve: Conclusion | Investopedia

    http://www.investopedia.com/university/thefed/fed5.asp
    ... money manager. Monetary policy is influenced through open-market operations,
    the discount rate and reserve requirements. The FOMC ...

  • Understanding Interest Rates, Inflation And The Bond Market

    http://www.investopedia.com/articles/bonds/09/bond-market-interest-rates.asp
    ... central banks. In the United States, the Federal Reserve Board's Open Market
    Committee (FOMC) sets the federal funds rate. Historically ...

  • The Fed's New Tools For Manipulating The Economy

    http://www.investopedia.com/articles/economics/08/monetary-policy-recession.asp
    ... If the Fed buys bonds in the open market, it increases the money supply in the ... if
    the Fed is being truthful, this would mean an interest rate increase is ...

  • How do open market operations affect the US money supply?

    http://www.investopedia.com/ask/answers/06/openmarketoperations.asp
    ... policy focuses on how a country determines the size and rate of growth ... The Federal
    Open Market Committee (FOMC) is comprised of the Board of Governors and five ...

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