Answer :
when the fed conducts an open market purchase of securities, the fed funds rate lower the interest rate.
In relation to the amount lent, deposited, or borrowed, the amount of interest due each period is expressed as an interest rate. The amount lent or borrowed, as well as the interest rate, frequency of compounding, and the period of time during which it is lent, deposited, or borrowed, all affect how much interest will be charged overall.
Other interest rates, such as monthly or daily rates, also apply but are typically annualised. The sum that the lender demands from the borrower in addition to the principal amount is known as the interest rate. A person who deposits money in a bank or other financial institution also makes additional money in the eyes of the recipient because of the time worth of money, which is known as interest.
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