Assignment
Go to the Federal Reserve Board website and find the latest information available on the prime rate, the three-month CD rate, the discount rate, and the three-month T-bill rate using the following steps. Go to federalreserve gov website. Under "Select Statistical Releases," click on "Selected Interest Rates." Click on the most recent date. The data will be in this file on your computer screen. Questions:
1. What are the current levels for each of these interest rates?
2. Calculate the percentage change in each of these rates since May 2013.
3. What are the tools used by the Federal Reserve to implement monetary policy?
4. Explain how a decrease in the discount rate affects credit availability and the money supply.
5. Why does the Federal Reserve rarely use the discount rate to implement its monetary policy?
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.