What is the federal funds rate?

Question

What is the federal funds rate?

Answer 1

as of August 12th it was 1.95%.

http://www.federalreserve.gov/releases/h...

Or if you needed a definition, it is the rate at which the Fed makes very short-term loans to banks.  

Answer 2

the federal funds rate is the interest rate at which private depository institutions (mostly banks) lend balances (federal funds) at the Federal Reserve to other depository institutions, usually overnight. Changing the target rate is one form of open market operations that the Chairman of the Federal Reserve uses to regulate the supply of money in the U.S. economy.

Answer 3

rate that the federal banks charge banks when they borrow money!!!