PLANNING TO TAKE THE SECURITIES INDUSTRY ESSENTIALS (SIE) EXAM? THEN BE ABLE TO EXPLAIN AND IDENTIFY VARIOUS INTEREST RATES!

If you plan on sitting for the SIE Exam, make sure that you thoroughly understand the differences between the various interest rates, such as discount rate, prime rate, and federal funds rate.

FINRA publishes a Content Outline for the SIE Exam, and in Section 1.3.1, FINRA lists the various interests as being important for the test.

Bob Eder in his Study for the Securities Industry Essentials (SIE) Exam discusses interest rates in some detail. Here is an example of Bob Eder's treatment—note how Bob Eder links major paragraphs to FINRA's Content Outline:

Fed Funds Rate                                                                                                           (1.3.1)

The most volatile is the “federal funds rate,” charged by banks for overnight borrowing. Banks are constantly borrowing from and lending to other banks. Banks charge or pay the fed funds rate for these overnight loans. The Fed exercises only indirect control over this rate. The Fed announces its preferred level, and then most banks willingly go along with the Fed's suggestion.

Study for the Securities Industry Essentials (SIE) Exam is available from Amazon in both paperback and Kindle e-book versions. 

Here is the link to Bob Eder's SIE book on Amazon. 

For questions about Bob Eder's Study for the SIE Exam, or questions in general about the SIE Exam, or about Interest Rates, feel free to email Bob Eder at bobeder@bobeder.net.

Bob Eder received his Juris Doctor (J.D.) degree from the University of Utah, Quinney College of Law, in 2001. See Bob Eder's Author Page on Amazon.com.