The Market Equilibrium, in Which the Quantity of Reserves Demanded

question 103

Multiple Choice

The market equilibrium, in which the quantity of reserves demanded equals the quantity of reserves supplied ________.

• A) determines the overnight rate
• B) occurs at the intersection of the vertical supply curve and the demand curve at the Bank of Canada's target level of reserves
• C) determines the interest rate charged on loans of these reserves
• D) All of the above.

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