Since 2002, the Fed Has Set the Primary Discount Rate

question 18

Essay

Since 2002, the Fed has set the primary discount rate at 100 basis points above the target federal funds rate.Why is this likely to prevent the spikes in the market federal funds similar to the ones that occurred in previous years?

---

Definitions:

Gardner's Theory

A theory of multiple intelligences proposed by Howard Gardner, suggesting individuals possess distinct types of intelligences rather than a single, general intelligence.

Multiple Intelligences

A theory proposed by Howard Gardner, suggesting that individuals have various kinds of intelligences, such as logical, linguistic, musical, and spatial.

Sternberg's Triarchic Theory

A theory of intelligence proposing that human intelligence comprises three aspects: analytical, creative, and practical.

Analytical

Pertaining to or using analysis; characterized by the ability to break down complex information or problems into smaller parts for better understanding or solution.