Mortgage REITs borrow short-term or adjustable-rate money (the federal funds rate has plunged from 6.5% in January to 3.5% today) and use it to buy longer-term mortgages or mortgage-backed securities, playing the spread between the two sets of interest rates.
The market was expecting a slightly higher money market rate going into the month end on fiscal tax collection.
And if your kid doesn't go to a state school, you'll get your money back, with, for example, a money market rate of return.
My point here is that open market purchases and the associated expansion of money growth rate are accepted as normal or routine Fed policy so long as interest rates have some room to decline in the process.
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However, it had to pay more to borrow the money, a rate of 6.29%.
Now the Fed is artificially stimulating the economy by printing money at a rate the world has never seen.
There will be no ceiling on how much of this low-interest-rate money banks can borrow from the Bank of England.
However, it had to pay more to borrow the money, a rate of 6.29%, indicating continuing unease in the markets.
That's because the banks committed to lend the money at one rate, but had to raise the interest to attract investors, if they could.
In October's MPC meeting, two members dissented, with one wanting to tighten the money supply via a rate rise, while another wanted the Bank to loosen money by restarting quantitative easing.
The fines were levied because of money laundering and rate fixing, screams to those who might actually be listening that big business and social responsibility are sitting at different ends of the spectrum.
In the same way, whether executives knew about the money laundering or rate manipulation, such illegal behavior should result in the return of incentives by any member of senior management who was in post when it happened.
Part of an easy money, low interest rate monetary policy is to get corporate investors to take on risk and invest their money in production.
It is the refinancing rate that usually dictates average money market interest rates with the deposit facility rate acting as a lower floor.
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It would have until 2046 to repay the money at an interest rate of around 3%.
ECB's strict monetarists probably disagree, arguing that the faster rate of money-supply growth signals higher inflation ahead.
The Fed funds rate is money loaned from one bank to another overnight.
Repaying the loan might not make sense if you can instead invest the money at a higher rate of interest.
The operator argues that, because it is already losing money at an alarming rate, it cannot withstand further short-term pressure.
Commercial paper, which enabled companies to raise short-term money at a cheaper rate by bypassing banks, proliferated in the 1960s.
At present, the petrodollars are converted into local money at a fixed rate and doled out as governments see fit.
Rather than being a safe place to keep money, the exchange rate of Bitcoins relative to other global currencies has fluctuated wildly.
It may be that just getting the money, at whatever rate for a brief period of time, is priceless--only they can decide.
However, clear concise ECB rhetoric can be just as effective, easily preparing money markets for a rate change rather than the action itself.
Despite the widespread slack in the economy, including an almost 10 percent official unemployment rate, money growth has not been overly rapid for the circumstances.
Actions such as selling credit default swaps based on rotten loans, money laundering, interest rate manipulation, and excessive risk-taking can be as objectively determined as financial restatements.
Because they make their money on the interest rate differential.
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