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 You may have heard them referred to as shells using the outdated Bohr Atom model.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 This model however is outdated.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 target federal funds rate, which is set by the Federal Reserve Board, serves as the basis for the prime rate. The federal funds rate is the interest rate commercial banks charge each other for overnight lending. Generally, the prime rate is about 3 percent higher than the federal funds rate. That means that when the Fed raises interest rates, the prime rate also goes up. Banks use the prime rate to set interest rates on numerous short-term loan products.