In chemistry an âorbitâ is the energy level that an electron resides in within an atom or molecule. You may have heard them referred to as shells using the outdated Bohr Atom model. According to the Bohr model, the first shell holds 2 electrons. This model however is outdated.
As of April 2017 the target range for the Federal Funds Rate is 0.75-1.00%. This represents the third increase in the target rate since tightening began in December 2015. The last full cycle of rate increases occurred between June 2004 and June 2006 as rates steadily rose from 1.00% to 5.25%.
The discount rate is the interest rate that Federal Reserve Banks charge when they make collateralized loansâusually overnightâto depository institutions. The federal funds market. The fed funds rate and the discount rate are two of the tools the Federal Reserve uses to set U.S. monetary policy. Letâs start by describing the more important of these two short-term interest ratesâthe fed funds rate.